There are two basic types of shares:
registered shares which are made out
to the owner's name and bearer shares,
where the holder of the share in the corporation
is unknown but can nevertheless enforce his rights as a shareholder. Shares can have other properties
Shares that are made out to an unnamed bearer are called "bearer shares".
With bearer shares, in contrast to registered shares, the company does not know who owns its shares - i.e.
the company does not know its shareholders.
Bearer shares can be transferred both on-exchange or over-the-counter and the owner still acquires
membership and proprietary rights on buying the shares. The banks who have handled the purchase of
the shares know the names and addresses of the persons purchasing the bearer shares. They provide
the shareholders with their confirmation of share ownership for the general meeting of shareholders and receive
dividend payments on their behalf.
Bearer shares with restricted transferability
It is not possible to restrict the transferability of bearer shares because the
shareholder is by definition anonymous.