Bearer Shares, Registered Shares

Owning shares in a corporation entitles the shareholder to view corporate information, such as its earnings and other details; to benefit from the corporation’s dividends; and to express views about the direction of the corporation’s future by voting on issues during shareholder meetings.

There are two kinds of shares:

  • Registered shares simply mean that the shareholder’s name is registered with the corporation and therefore known to all its financial officers and the board of directors.
  • Bearer shares are purchased through a third party, thereby keeping the shareholder’s name and information from the issuing corporation. In essence, the holder of bearer shares has invested anonymously.