Which term describes a corporate share that is owned by the holder of the share certificate and is not registered; ownership remains private?

• A. Bearer share
• B. Registered share
• C. Democratic rule
• D. Public International Law

Answer: (A)

Bearer shares are ownership by possession. The share certificate itself acts as proof of ownership, and the company does not keep a registered record of who owns the shares. Because there’s no name attached in the company’s books, ownership remains private and is transferred simply by delivering the physical certificate to another person. The new holder becomes the owner by possession, without an entry in the company’s records.

In contrast, registered shares have the owner’s name recorded in the company’s share registry, and transfers require updating that registry to reflect the new owner. The other terms listed don’t apply to this concept. Bearer shares historically offer anonymity and ease of transfer, though many jurisdictions now restrict or eliminate them to improve transparency and regulatory oversight.