What term describes beneficial owners of securities who do not allow issuers to directly communicate with them?

• A. Beneficial Owners
• B. Objecting Beneficial Owners
• C. Registered Owners
• D. Anonymous Securities Holders

Answer: (B)

The correct term for beneficial owners of securities who do not allow issuers to communicate directly with them is "Objecting Beneficial Owners." This designation specifically refers to individuals or entities that hold securities but choose to keep their identity and ownership information hidden from issuers. By objecting to direct communication, these owners can maintain a level of privacy regarding their financial positions and personal information. This distinction is important in securities markets, as it influences how information is disseminated and what obligations issuers have in terms of communication.

The other terms do not accurately reflect this specific situation. Beneficial owners generally refer to individuals who possess the rights to benefits from a security, but without the context of their communication preferences. Registered owners are those whose names appear on the company's books, indicating they are recognized by the issuer, which contrasts with the privacy maintained by objecting beneficial owners. Anonymous securities holders would suggest complete non-identification, but this term is less commonly used and does not specifically address the objection to communication that characterizes the exact situation described in the question.