A Bearer Share is equity security wholly owned by the person or entity that holds the physical stock certificate, thus the name "bearer" share. The issuing firm neither registers the owner of the stock nor tracks transfers of ownership; the company disperses dividends to bearer shares when a physical coupon is presented to the firm. Because the share is not registered to any authority, transferring the ownership of the stock involves only delivering the physical document.Bearer shares have some advantages and disadvantages compared to registered shares. One advantage is that they are easier to transfer; the owner simply has to deliver the physical document to the new owner, without having to go through any formalities. Another advantage is that they offer more confidentiality, since there is no public record of the owner. On the downside, bearer shares can be easily lost or stolen, and the owner has no recourse if this happens. Moreover, since there is no public record of the owner, it can be difficult to track down the owner if there is a problem with the stock.Overall, bearer shares have some advantages and disadvantages compared to registered shares. They are easier to transfer but can be easily lost or stolen. They offer more confidentiality but it can be difficult to track down the owner if there is a problem with the stock.
