Bearer Share

AAA

DEFINITION of 'Bearer Share'

An equity security that is wholly owned by whoever holds the physical stock certificate. The issuing firm neither registers the owner of the stock, nor does it track transfers of ownership. The company disperses dividends to bearer shares when a physical coupon is presented to the firm.

INVESTOPEDIA EXPLAINS 'Bearer Share'

Because the share is not registered to any authority, transferring the ownership of the stock involves only delivering the physical document. Bearer shares lack the regulation and control of common shares because ownership is never recorded. Similar to bearer bonds, these shares are often international securities.

RELATED TERMS
  1. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  2. Bearer Bond

    A fixed-income instrument that is owned by whoever is holding ...
  3. Holder Of Record

    The name of the person who is the registered owner of a security ...
  4. Bearer Form

    A security not registered in the issuing corporation's books ...
  5. In Street Name

    A brokerage account where the customer's securities and assets ...
  6. Scrap Paper

    Stock certificates that have become worthless. When a company ...
Related Articles
  1. Investing Basics

    Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  2. Investing Basics

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  3. Investing Basics

    If I have paper shares of a telecommunication company how do I convert them to electronic?

    Convert your paper shares of a telecommunications company's stock to electronic form in just a few simple steps, and make them easier to manage.
  4. Investing Basics

    If I have paper shares of a telecommunication company, how do I convert them to electronic?

    Convert your paper shares of a telecommunications company's stock to electronic form in just a few simple steps, and make them easier to manage.
  5. Investing

    I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order to replace the physical certificate, the shareholder must contact ...
  6. Investing

    How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was the only way to authenticate stock ownership. This is not the case anymore. ...
  7. Investing

    My family owns an old railroad bond from 1938. Is there any way to find out whether this still has any ...

    That's a tough question, but the short answer is that you are going to have to do some homework. Where should you begin?The first step would be to contact your broker to see whether he or she ...
  8. Options & Futures

    What does "in street name" mean, and why are securities held this way?

    In almost every instance when you buy or sell securities with a broker, your name is not actually on the stock or bond certificate. The name that appears on the certificate is that of your broker, ...
  9. Investing

    I hold stock certificates in a company that just had a stock split. What happens now?

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an investor purchases shares in a company, they are never actually held ...

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center