when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name the true owner is the beneficial owner even though for safety and convenience the bank or broker holds the title 1
beneficial ownership may be shared among a group of individuals if a beneficial owner controls a position of more than 5 of a company or entity it must file schedule 13d under section 12 of the securities exchange act of 1934 2beneficial ownership is distinguished from legal ownership in most cases the legal and beneficial owners are one and the same but there are some cases legitimate and sometimes less legitimate where the beneficial owner of a property may wish to remain anonymous 