Often used in risk arbitrage. Person who enjoys the benefits of ownership even though title is in another name. (Abused through the illegal use of a parking violation.)
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"The entitlement to receive some or all of the benefits of ownership of a security ( e.g. income, voting rights, power to transfer). Beneficial ownership is usually distinguished from 'legal ownership' of a security. Euroclear Clearing and Settlement glossary
See also legal owner Euroclear Clearing and Settlement glossary
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beneficial ownership UK US noun [U]
► LAW, FINANCE, PROPERTY the right to receive profits, income, interest, etc. from a property or investment that you own: »
He had beneficial ownership of shares worth $6m.
Financial and business terms. 2012.