Entitlement Holder
Idea
The legal fiction underlying the entire US stock market: since a 1994–1996 legal revision, investors do not actually own their stocks — they hold a contractual 'entitlement' against their broker, several layers removed from the real legal title, which is held by a single central entity (Cede & Co.). This claim is weaker than real ownership, and most investors have no idea this is their actual legal position.
The engine's definition — word for word
Report #72 concept. The legal fiction that replaced direct securities ownership in America. Under UCC Article 8 (1994-1996 revision), investors do not own stocks — they hold a 'securities entitlement' against their securities intermediary (broker). This entitlement is a contractual claim, not a property right. The entitlement holder has weaker legal standing than a registered owner: they cannot reclaim wrongfully transferred securities unless they prove explicit 'collusion' between the intermediary and the purchaser. In practice, 'owning' a stock means holding a sub-sub-entitlement several layers removed from the actual legal title, which is held by Cede & Co. The entire US equity market operates on this legal foundation. Most investors have no idea they are entitlement holders, not owners.
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