How does ownership of my shares work?

When you invest in a company on Netcapital, you become the beneficial owner of the securities purchased.

A beneficial owner is an investor who enjoys the benefits of ownership, even though the title of the property is in another name.

Netcapital is partnered with a custodian who is the sole record owner of all of the securities purchased through our platform. Our custodian, in coordination with Netcapital’s technology and our SEC-registered Transfer Agent, keeps track of and manages all of the shares sold. This makes it easy for small, private companies to take on a large number of shareholders. 

Being a beneficial owner means that you can enjoy all of the benefits of owning the securities while the management of the new beneficial owners is easy for the companies you invest in. Without this structure, it would be infeasible for most companies to accept investments from a large number of individuals.