Actual Owner

  

An Actual Owner is...the actual owner.

Bet you're shocked to read that, but as you might imagine, evil-do'ers often present themselves as being the actual or real owner, or beneficial owner, when in fact, they're just interlopers trying to abscond with a rube's hard-earned cash.

In partnerships and public companies, determining the actual owner doesn't necessarily involve evil-do'ers. Instead, there can be debate as to who controls the company, either via board member attribution, or share count behind the board.

Related or Semi-related Video

Finance: What is a limited partnership?1 Views

00:00

Finance allah shmoop what is a limited partnership Well a

00:06

limited partnership is not the qualitative assessment of mole arian

00:11

curly here woop woop and yes shmoop alright Rather a

00:15

limited partner is an investment company run by a general

00:19

partner with clear lines of demarcation as it relates to

00:23

risk fiduciary duty and management responsibilities like of the day

00:27

to day investing or whatever the partnership does When you

00:30

think limited partnership think things like a venture capital company

00:35

or venture capital partnerships like one where you have a

00:38

dozen experts who come together with long track records of

00:41

identifying early stage growth companies usually deep in technology at

00:46

least here in silicon valley Together they are the general

00:49

partners of the partnership the generals they're responsible for the

00:53

day to day management of the firm and in theory

00:56

they have unlimited personal liability Should something go terribly terribly

01:00

wrong the limited partners are their investors the people who

01:05

give them money to make more money General partners raise

01:09

money for their funds by getting limited apartments to invest

01:12

in them So what is limited about this Well the

01:15

liability to the investors as long as those investing in

01:19

the limited liability partnership Don't operate the firm or manage

01:23

it or deal with day to day issues that come

01:26

up well then those limited partners are fully shielded from

01:29

any liability Should you know something go terribly terribly wrong

01:33

Although if your limited partner in a company that's designed

01:36

a nuclear power blender that spend just a little too

01:40

fast Well we're not sure how much that'll be worth 00:01:42.696 --> [endTime] in the grand scheme of things Whoa

Up Next

Finance: What is a partnership?
23 Views

What is a partnership? A partnership is an arrangement where two or more parties agree to form a business in cooperation with each other. Partnersh...

Finance: How does a board of directors function?
27 Views

How does a board of directors function? Public companies, as well as some private corporations and non profit groups, have a board of directors. Us...

Finance: What is an LLC?
4 Views

What is an LLC? LLC stands for Limited Liability Company. It is a hybrid type of company that combines the corporate protections of separating corp...

Finance: What is non-voting stock?
4 Views

What is non-voting stock? Non voting stock is a class of stock that carries no voting rights on agenda items subject to shareholder vote. While som...

Find other enlightening terms in Shmoop Finance Genius Bar(f)