How markets work
Nominee account
An arrangement where your broker is the registered owner of your shares and you are the beneficial owner.
How it works
Almost all retail holdings work this way. The company’s register shows the broker’s nominee company; the broker’s records show which shares belong to which customer.
It makes trading fast and cheap. The trade-off is that you may not receive company communications, may have to ask to vote, and are relying on the broker’s record-keeping to prove what is yours.
Related terms
- CustodianThe institution that physically safeguards the securities you own.
- BrokerThe firm that holds your account and sends your orders to the market on your behalf.
- ShareholderSomeone who owns shares in a company, and with them a vote and a claim on its profits.
- Proxy voteVoting on company resolutions without attending the meeting in person.
Mentioned in
More in How markets work
- Order book
- Market maker
- Payment for order flow
- Market impact
- Securities lending
- Market hours
- Settlement
- Margin call
All 33 How markets work terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.