A more thorough explanation:

A beneficial holder of securities is someone who holds the ownership rights to corporate stock, even though the stock is not registered under their name in the corporation's records. This means that the holder has the right to receive dividends and vote on corporate matters, but their name is not listed as the official owner of the stock.

For example, let's say that John buys 100 shares of stock in XYZ Corporation, but he doesn't want his name to appear on the corporation's records. Instead, he puts the stock in his brother's name, Tom. Even though Tom's name is listed as the owner of the stock, John is the beneficial holder because he still has the right to receive dividends and vote on corporate matters.

Another example would be if a company issues stock options to its employees. The employees may not be listed as the official owners of the stock until they exercise their options, but they are still considered beneficial holders because they have the right to receive the benefits of owning the stock.