Bearer Shares

Bearer shares are a type of stock that is owned by whoever physically holds the share certificates, rather than being registered in a specific person's name. This means ownership is transferred simply by handing over the physical share document, making them easily transferable and private. Historically, they allowed for quick transfers and confidentiality, but they also posed risks like potential misuse for illegal activities. Due to concerns over transparency and AML (anti-money laundering) regulations, many countries have phased out or restricted the use of bearer shares.