Bearer Share


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.

BREAKING DOWN '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.

  1. Dividend

    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. In Street Name

    A brokerage account where the customer's securities and assets ...
  4. Bearer Form

    A security not registered in the issuing corporation's books ...
  5. Holder Of Record

    The name of the person who is the registered owner of a security ...
  6. Scrap Paper

    Stock certificates that have become worthless. When a company ...
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