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Bearer Share

A share whose ownership is not registered in a name. As a bearer security, a bearer share is negotiable- that is, it can be transferred between owners (bearers or holders) without endorsement. Transfer of ownership (title) can take place without delay and hassle-free as there would be no need for any entries in the issuer’s registers to that effect. Therefore, whoever holds the share certificate will have full ownership of the share.

Bearer shares are common in use in European countries. In other countries, like the United States, registered shares (non-bearer shares) are popular.


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