An entitlement holder is a person recognized in the records of a securities intermediary as having a security entitlement. This means they have a legal claim to specific securities held by that intermediary. If someone acquires a security entitlement through lawful means, they are considered the entitlement holder.
The term "entitlement holder" is commonly used in the context of securities law and financial transactions. It is relevant in various legal areas, including:
Understanding who qualifies as an entitlement holder is crucial for resolving disputes over securities ownership, and users can manage related forms and procedures using templates from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: If Jane purchases shares of a company through a brokerage, she becomes the entitlement holder of those shares, as they are recorded in the brokerage's system.
Example 2: A person who inherits stocks from a deceased relative, and the stocks are registered in their name, is also considered an entitlement holder (hypothetical example).
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Specific regulations on securities held in trust |
| New York | Additional requirements for entitlement holders in corporate transactions |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Security Holder | A person who owns a security. | Entitlement holders have specific legal claims recorded by intermediaries. |
| Beneficial Owner | A person who enjoys the benefits of ownership even if the title is in another name. | Entitlement holders are formally recognized in records, while beneficial owners may not be. |
If you believe you are an entitlement holder, ensure that your security entitlements are properly recorded with the intermediary. You may want to:
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| Attribute | Details |
|---|---|
| Typical Fees | Varies by intermediary |
| Jurisdiction | Varies by state and federal laws |
| Possible Penalties | Loss of rights to securities if not properly recorded |