What is a bearer share?

There are different types of actions of a company. Specifically, bearer shares are the most common and used by companies, since they can be transferred from one holder to another in a very easy and almost uncomplicated way.

On the other hand, this does not happen when a normal or registered share is exchanged in which the name of the owner of the share appears in it, this belonging to the register of partners of the company to which the share belongs. In the past, this was very common among companies, but it was a very annoying process to have to change the owner of the share each time it wanted to be acquired.

Thanks to the appearance of bearer shares, users can exchange their shares in a much easier way: the person who owns the title will own the participation in the company. It is enough to receive the share that has been transferred. This allows it to be exchanged much easier, and its sale does not become a problem by not having to change the owner, carry out legal processes, etc.

Advantages of bearer shares

Among its main advantages we find:

  • Simple and fast transmission. When you have bearer shares, it is easier to be able to transfer the titles from the buyer to the seller, as well as their change of owner.
  • Cost savings. By only having to exchange a title that does not require legal registration (since it only affects the person who carries said document), the costes, even going so far as to cancel them.
  • Partner privacy. The partners do not have to know each other and also maintain a certain anonymity. This is due to the fact that there is no such record of the shareholders who hold the company's share titles.

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