How Do You Spell REGISTERED SHARE?
Pronunciation: [ɹˈɛd͡ʒɪstəd ʃˈe͡ə] (IPA) 
Pronunciation: [ɹˈɛd͡ʒɪstəd ʃˈe͡ə] (IPA)
A registered share refers to a type of ownership interest or security that is recorded in the official register of a corporation or company. It represents a specific portion or number of shares that an individual or entity holds in the company, and entitles them to certain rights and privileges as a shareholder.
In a registered share structure, shareholders' names, contact details, and the number of shares they own are registered and maintained by the company, typically in a shareholders' register. This official record allows the company to keep track of its shareholders and provide them with relevant information, including voting rights, dividend payments, and notices for meetings.
Registered shares offer several advantages. Firstly, they provide a high level of investor protection, as ownership is clearly recorded and easily verifiable. It also allows for direct communication between the company and its shareholders, ensuring prompt delivery of important information and enhancing transparency.
Additionally, registered shares generally provide shareholders with voting rights, enabling them to participate in decision-making processes and influence the direction of the company. These shares may also grant shareholders pre-emptive rights, allowing them to purchase additional shares before they are offered to the public.
Notably, registered shares differ from bearer shares, which do not have an official record of ownership and can be physically transferred from one person to another simply via delivery.
The word "registered share" has its etymology in the combination of the terms "registered" and "share".
- "Registered" comes from the Latin word "registrare", meaning "to write down, register". It entered the English language via the Middle French word "registrer" in the late 15th century. The term refers to the action of officially recording or enlisting something, usually in a register or list.
- "Share" has its roots in the Old English word "scearu", which meant a "portion" or "division". It is associated with the concept of dividing or apportioning something, especially in the context of ownership or participation.
When these terms are combined, a "registered share" refers to a type of share or stock ownership that is officially recorded in a register or list, acknowledging the ownership and providing evidence of the shareholder's rights.
