IR Insights

Unlocking the Benefits of NOBO Lists: How Companies can Access their Shareholder Base

May 9, 2023

In today's digital age, it's easier than ever for investors to buy and sell shares in a company. However, it's becoming increasingly difficult for companies to identify and engage with their shareholders. This is where NOBO lists come in. NOBO stands for "Non-Objecting Beneficial Owner," and they are a crucial resource for companies looking to understand and engage with their shareholders.

What is a NOBO Shareholder?

NOBO stands for "Non-Objecting Beneficial Owner." These are shareholders who hold shares in a company through a broker or other intermediary. Shareholders that use popular brokerages such as Robinhood, E-Trade, Fidelity, and others are automatically qualified as NOBO holders. In other words, they are beneficial owners of the shares but do not have their names on the company's books. NOBO lists contain the names and addresses of all non-objecting beneficial owners of the company's shares, and are maintained by the company's transfer agent.

Understanding NOBO shareholders is important for investors, as it can provide insights into the identity and behavior of a company's shareholders. Knowing who owns a company's shares can help investors make more informed decisions about buying, selling, or holding shares in the company. NOBO lists can also be valuable for companies, as they can help companies better understand their shareholder base and their preferences.

How Do I Access NOBO Lists?

NOBO lists are not publicly available. They are maintained by a company's transfer agent and can only be accessed by request of the company. To access a NOBO list, an employee with a company email must reach out to the transfer agent and request it.

NOBO lists are valuable for companies, as they can provide insights into the identity and behavior of a company's shareholders. By analyzing NOBO lists, companies can determine who owns their shares and how they are behaving. This information can help companies make more informed decisions about shareholders on an individual level and see who is a long term player versus who is just trading the stock.

The Benefits of NOBO Lists

For companies, NOBO lists are a useful tool for shareholder engagement and corporate governance. By knowing who their shareholders are, companies can communicate more effectively with them, gather feedback, and address concerns. NOBO lists can also be used to identify potential activists or hostile shareholders and take appropriate action.

Understanding the benefits of NOBO lists is crucial for both investors and companies. Investors can use NOBO lists to gain insights into a company's ownership structure and shareholder behavior, while companies can use NOBO lists to engage more effectively with their shareholders and address their concerns.

NOBO Lists and Proxy Voting

Understanding the role of NOBO lists in proxy voting is important for investors who want to ensure that their votes are being counted and that their interests are being represented. By analyzing NOBO lists, investors can determine how many shares are being voted by NOBO shareholders, and can adjust their voting strategies accordingly.

Shareholders who wish to vote their shares by proxy must first be identified as a NOBO on the company's NOBO list. This information is then provided to the company's proxy solicitor, who will send proxy materials to the shareholder. By analyzing NOBO lists, investors can determine the voting behavior of NOBO shareholders and adjust their voting strategies accordingly.

NOBO lists can also be valuable for corporate actions, such as mergers, acquisitions, and tender offers. In these situations, companies need to communicate with their shareholders and obtain their approval. By analyzing NOBO lists, companies can determine who their shareholders are and how they are likely to vote on the transaction.

Requesting and Analyzing a NOBO List

At Equity Animal, we can help you analyze NOBO lists to make more informed investment decisions. Our team of experts has extensive experience analyzing NOBO lists and can provide valuable insights into a company's ownership structure and shareholder behavior.

Companies can gain a better understanding of the behavior of a company's shareholders and how they are likely to vote on company issues. They can also gain insights into their shareholder base and better understand their concerns and preferences. By knowing who their shareholders are, companies can communicate more effectively with their shareholders and address their concerns.

Start building deeper relationships with your shareholders today by partnering with Equity Animal to request and analyze your company’s NOBO list.

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