registered owner of a stock or bond if different from the beneficial owner, who acts as holder of record for securities and other assets. Typically, this arrangement is done when a broker or trustee holds securities in street name, or the actual owner may not wish to be identified. Nominee ownership simplifies the registration and transferof securities held under a corporate name, and often is done by banks, trust companies, custodians, and fiduciaries for institutional or individual clients.
- someone nominated for an elective position.
- person or firm, such as a bank official or brokerage house, into whose name securities or other properties are transferred by agreement. Securities held in street name, for example, are registered in the name of a broker (nominee) to facilitate transactions, although the customer remains the true owner.
- any payee who is not the actual owner of a dividend or interest payment, but who would be required to furnish his/her identifying number to the payor.
person or firm, such as a bank official or brokerage house, into whose name securities or other properties are transferred by agreement. Securities held in street name, for example, are registered in the name of a broker (nominee) to facilitate transactions, although the customer remains the true owner.
one who, in a limited sense, acts for or represents another.
Example: Davis, with consent, used her secretary's name as the grantee to property she bought. Her secretary was considered her nominee. Simultaneously, her secretary deeded the property to Davis. There was a mortgage on the property. Davis acquired the property from the nominee subject to the mortgage. By doing so, Davis is not personally liable for the mortgage loan.
