Bearer share I. Definition An equity security (titre de participation) that is wholly owned by whoever (quiconque) holds the certificate. The issuing firm neither registers the owner of the share, nor does it track transfers of shareholders. A bearer share allows its owner to give in easily to other investors. These securities held by a financial intermediary (banker etc.) are freely tradable on the stock market for listed companies. The company disperses dividends to bearer shares when a physical coupon is presented to the firm. II. Rights

- Right to share in the profit of the company.
- Right to share in the capital after bankrupt.
- Right to attend shareholders meeting.
- Right to receive dividends when a physical coupon is presented to the issuing company.
- Right to be not registered III. Efficiency of the share

a) Dividend

- Unpredictable
- Can be limited

b) Fluctuation rate of the share

- can vary according to the financial situation of the company.

IV. Risks of the share

- Bearer shares lack the regulation and control of common shares because ownership is never recorded (for the company).
- Fluctuation of the rate share
- Dividends
Conclusion:

This holding method has advantages but also disadvantages. Thus, the payment of custody rights (droit de garde) but also the lacks of information are major disadvantages (drawbacks). The company has no knowledge of the shareholder (address, name, phone number etc.), they can’t send to him full and accurate information about the company.

The bearer shares are preferred for a short-term or medium-term (a few days or weeks). They allow greater flexibility in investments, because they don’t require administrative proceedings. In addition, the interest of registered shares is real only in the case of a long-term.

Registered share I. Definition A Registered share is a stock that is registered on the name of the exact owner. If the owner of such a share