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Author: kahunacfa Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 137  
Subject: Re: beneficially owns Date: 2/11/2005 5:23 PM
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I was reading the disclosure policy today and came accross a term I didn't know: beneficially owns. I did a search on the messageboards and also looked in the glossory. Could someone explain what this term means? - dhagan, FDP P#85

I can not necessarily define what it means relative to the "Fool Disclosure Policy", but my understanding of what it means is something like this: If the writer stands to benefit by for example, a proxy ownership position or interest in a security discussed, owned in a trust fund where they are a named beneficiary of the Trust, then they beneficially own the security in question.

Legally, the security is owned by the Trust, not by the "Motley Fool writer". Yet if the "Fool writer's" article causes the stock owned in the trust to increase in price, then the "Fool writer" would benefit indirectly because the value of the Trust holding would increase. The "Fool writer" beneficially owns the security in question. This could be extended to anyone in "the Fool writer's" family as well.

Kahuna,CFA
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