Underlying asset

Hi :wave: everyone,

I just have a simple question that i am hoping that you may be able to answer.

I am wondering if we, as investors, actually own the inderlying asset of the stocks that we are trading?

I have a few stocks that are linked to Russia for example Evraz and Polymetal. I am just enquiring so i can try and make sense of the future of these stocks and also what, if any, work arounds there may be.

I am interested to hear your comments about this.

Generally speaking. If you own the stock in an ISA freetrade hold the stock in a nominee company with you named as the beneficial owner. This is normally standard practice, your name isn’t down on the specific shares directly but you do own effectively them.

If it’s a SIPP or GIA this is changing, you may or may not be the beneficial owner of the stocks depending on if they are lent out. If they are lent out you become the beneficial owner of equivalent collateral. (I don’t believe this has started just yet)

For your Russian stocks these have suspended trading on the London stock exchange. You might want to read up on the stock threads about them. As I understand your still the beneficial owner of the stocks you just can’t trade them so long as sanctions are in place on Russia.

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@Eden that is great. Thank you for taking the time to explain and write it all down.

The reason i asked is because there are potential conflicts on other platforms which has caused quite a stir.

Once again. I appreciate your time.