Bearer shares differ from registered shares in that the holder of a bearer share is not designated by name on the share certificate, and is usually not required to furnish proof of rightful ownership.

Bearer shares are transferred informally and by delivery, without any changes having to be made to the certificate. As a consequence, they are highly fungible (interchangeable) and can be traded easily.

In keeping with the German Stock Corporation Act, stock corporations issue bearer shares unless their charter provides for the issue of another class of share.

General term: bearer instrument

Antonym: registered share