The rights and property interest of an entitlement holder (www.practicallaw.com/0-383-2179) with respect to a financial asset (www.practicallaw.com/5-383-2186) held through a securities intermediary (www.practicallaw.com/3-382-3809) (UCC (www.practicallaw.com/1-382-3891) §8-102(a)(17)).
A security entitlement entitles the entitlement holder to rights against the securities intermediary and interest in property held by the securities intermediary. A security (www.practicallaw.com/1-382-3810) differs from a security entitlement because a person holding a security has a direct interest in the security. When a person holds a security through a securities account (www.practicallaw.com/6-382-3803), the person does not own a direct interest in the security and only has an indirect interest in the security by having a security entitlement in that account.