OBO
Pronunciation: oh-boh
Also written as: OBO — Objecting Beneficial Owner
Objecting Beneficial Owner — a beneficial owner who has declined to permit the disclosure of their identity to the issuer of the securities they hold.
Full Definition
An Objecting Beneficial Owner (OBO) holds securities in street name and has instructed their broker not to disclose their name and contact information to the issuing company. As a result, issuers cannot communicate directly with OBO shareholders and must route all proxy materials and corporate communications through the brokerage intermediary (typically via Broadridge). OBO status is the default preference in the US for retail investors who do not actively indicate otherwise. The distinction between OBO and NOBO is critical for designing proxy solicitation campaigns and calculating mailing costs.
Usage
Usage note: Render as 'OBO' (full caps). Distinguish clearly from 'NOBO.' Both terms are technical and should not be paraphrased loosely in compliance-sensitive documents.
In Context
- "Because the majority of retail investors are OBOs, the proxy solicitor routed materials through Broadridge." — Annual meeting planning memo
- "OBO holders cannot be contacted directly by the issuer without violating SEC regulations." — Investor relations compliance note