Registered shares are those shares of a company or society that include the name of the owner who owns them. In this case, the actions they are issued with the name of the shareholder to which they belong. But registered shares are not only characterized by the way in which they are issued, but unlike other types of shares, registered shares also need a specific transmission method, since they can be endorsable or not endorsable.
How to transfer registered shares?
In the case of endorsable registered shares, since these shares are in the name of the owner, in the case of wanting to buy or sell registered shares it is necessary to carry out a formal procedure to carry out the transfer of these registered shares. This procedure includes the signing of a contract by both the shareholder that sells the registered shares and the person who buys said shares. The objective of this procedure to transfer registered shares is to record the change of owner in the Register Book of endorsable registered shares that the company or society has, since it is vitally important to keep this document updated. In order to register the change of ownership of the registered shares, it is necessary that both the seller and the buyer send the corresponding company or society the signed document transferring the registered shares. If not, the change of owner will not be registered and this could pose problems later in the shareholders' meetings.
If, on the other hand, they are non-endorsable registered shares, the shares cannot be transferred by endorsement, but a non-endorsable loan assignment contract must be made. Of course, the change must also be recorded, but in this case it is made in the Register Book of non-endorsable registered shares.
Examples of registered shares
Normally, registered shares are usually the shares chosen to carry out financial operations on the stock exchange. Therefore, among the examples of registered shares that we can find are:
- operations carried out by companies or corporations prestigious in the stock market
- football teams that buy and sell shares on the stock exchange.