What is a Bearer Share?
In the world of stocks, bonds, and shares, there is a type of financial instrument that is referred to as a bearer share. Essentially, a bearer share is understood to be a stock certificate that is payable to the person who is actually in possession of the share at the time that the share is put up for sale. The bearer share may be in the possession of the person or entity who originally purchased the share, or it could be someone who acquired the bearer share through such means as a sale, inheritance or as payment on a debt. Here is some background on how a bearer share functions, and what this means to the individual or entity that is in possession of one or more bearer shares. Many companies issue a limited number of stock certificates that do not include the name of the purchasing party. When this sort of transaction occurs, there is no record of ownership registered by the seller or the corporation that originally issued the stock in the first place. This creates a situation where
