Which term describes a corporate share on which records are kept indicating the share's owner and its selling and buying price?

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Study for the Chartered Property Casualty Underwriter 530 Exam with flashcards and multiple choice questions. Each question has hints and explanations to enhance your understanding and prepare you thoroughly.

Multiple Choice

Which term describes a corporate share on which records are kept indicating the share's owner and its selling and buying price?

Explanation:
Ownership and transfer are tracked through the company’s official records. When the company keeps a share register that lists who owns each share and records the price at which transfers occur, those are registered shares. This system provides a clear, auditable chain of ownership, and the price history is tied to the transfer records. Bearer shares rely on possession of a physical certificate to prove ownership, not the company’s books, which is why they don’t fit. The other terms aren’t related to how ownership and price history are recorded by the issuer.

Ownership and transfer are tracked through the company’s official records. When the company keeps a share register that lists who owns each share and records the price at which transfers occur, those are registered shares. This system provides a clear, auditable chain of ownership, and the price history is tied to the transfer records. Bearer shares rely on possession of a physical certificate to prove ownership, not the company’s books, which is why they don’t fit. The other terms aren’t related to how ownership and price history are recorded by the issuer.

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