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TeachMeFinance.com - explain Dummy stockholder historic definition... Dummy stockholder -- One who holds (in whose name is made out and stands) stock which in fact belongs to another. It is a common practise for large owners of stocks to have their stocks made out in the names of clerks and brokers. The purpose is to conceal the actual ownership. When a broker buys stock for a speculator the certificate is not made out in the name of the speculator. A certificate signed (assigned) in blank (see Assigned in blank) by the original owner is received by the buying broker from the selling broker and this certificate may on the resale of the stock be delivered to the new buying broker, and so on, the same certificate continuing to serve indefinitely in transactions. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.