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Nominee

A company that holds investment company shares on your behalf.

A company that holds investment company shares on your behalf.

You can buy and hold shares in an investment company in your own name, and receive a share certificate, or they can be held for you by a nominee. This means the nominee is the legal owner of the shares, but you still get the benefit of any increase in the share price, dividends etc.

Using a nominee can cut down on paperwork and costs associated with buying shares. The majority of wrapper schemes, ISAs and online share dealing accounts work in this way and can be very cost-effective.

However, you may lose some of the advantages of holding shares in your own name, such as being sent the annual report and accounts directly or being able to vote at the Annual General Meeting.

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