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1. What is a bearer security and how does it work?
Bearer shares are financial securities whose identity of the owner is not communicated to the company issuing the said shares. This method of detention is commonly used for flexibility And her ease of management.
Les financial intermediaries, such as banks and brokers, play a crucial role in maintaining securities accounts where the shares of different investors are grouped.
When an individual buys bearer shares, they are recorded in a Securities account Or a Stock Savings Plan (PEA), managed by the selected intermediary. The latter ensures the custody of titles and facilitates buying and selling operations on the financial markets.
The management of securities accounts for bearer shares also involves the collection and payment of dividends, which are income from movable capital, as well as the provision of tax information necessary for tax returns.
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2. What are the pros and cons of bearer shares?
Choosing bearer shares has several significant advantages for investors. One of the main benefits is management flexibility brought by this mode of detention. As explained above, all the titles held are grouped into a single account shares or PEA, managed by a financial intermediary. This centralization facilitates buying and selling operations and allows increased reactivity in the face of market fluctuations.
Bearer shares also have the advantage of being held anonymously. Investors are not known to listed companies, which may be desirable for those who prefer not to disclose their identity. In addition, anonymity simplifies administrative procedures, as personal information is not shared directly with the companies that issue the shares.
However, this mode of detention also involves constraints. Anonymity means that stockholders Must Inform themselves news and the performances of the companies in which they have invested. To participate in general meetings, bearer shareholders must request a Certificate of participation to their financial intermediary, which adds an additional step to the procedure. Indeed, due to their anonymity, they do not directly receive the convocations and reports of the general meetings.
In terms of costs, bearer shares can result in childcare expenses And brokerage fees invoiced by financial intermediaries. Although these costs vary between institutions, they represent a financial constraint to be taken into account in order to optimize the profitability of investments.
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3. Bearer shares and registered shares: what are the differences?
The main difference between bearer shares and registered shares is the Detention mode.
Bearer shares allow investors to remain anonymous with respect to listed companies, while registered shares require that the identity of the shareholders be recorded in registries Of businesses. This distinction influences several aspects of management and relationships with issuing companies.
Registered shares, whether in Pure nominative Or in Administered nominative, establish a relationship more direct and transparent with listed companies. In fact, registered shareholders are registered in the records of the issuing company, which allows the latter to know the identity of its investors. This privileged relationship offers several advantages.
Les registered shareholders receive directly the summonses at general meetings as well as detailed and regular information from companies. These include annual reports, of financial press releases or even minutes of the general meetings that appear in a mandatory register, the register of general meetings.
All of this strongly encourages participation of shareholders at general meetings. They can thus vote on the proposed resolutions and become more actively involved in the governance of the company through voting. Therefore, they do not need to request a certificate of participation from a financial intermediary as for a bearer security, which simplifies administrative procedures and reinforces their commitment in the life of the company.
Thus, the choice between bearer shares and registered shares depends on the priorities of the investor. While flexibility and anonymity are important, bearer shares are preferred. For those who value a close relationship with listed companies and potential advantages, registered shares, in particular managed registered shares, provide significant benefits.
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4. How to optimize the management of bearer shares?
To effectively manage bearer shares, several criteria must be taken into account.
First, it is important to choose a competitive financial intermediary, in order to pay reasonable custody and brokerage fees. Some institutions do not charge custody fees, which can significantly reduce the annual costs associated with holding securities. Compare the fees applied through various intermediaries makes it possible to optimize the profitability of investments.
La taxation is another crucial aspect. Gains made on shares, whether capital gains or dividends, are subject to taxation.
- In France, this income is taxed at single lump-sum levy (PFU) to a rate of 30%.
- It is still possible to opt for taxation at Progressive income tax schedule, depending on each person's fiscal situation.
- The use of an Equity Savings Plan (PEA) can offer interesting tax advantages, in particular a tax exemption on capital gains after five years of detention.
In order to maximize the benefits of bearer shares, it is recommended to adopt a diversification strategy. In fact, distributing investments over several listed companies from different sectors reduces the risks associated with market volatility.
In addition, regularly follow the economic and financial news allows you to make informed decisions, whether to buy or sell shares.
Finally, you should know that participating in the general meetings of companies, even as a bearer shareholder, allows you to benefit from a better understanding the strategy And business perspectives.
Did you already know that the dematerialization of general meetings had become a common practice for businesses?
Axiocap offers an innovative platform to allow shareholders to participate in general meetings in a completely dematerialized way. With this solution, you can vote on resolutions by voting online, asking questions live, and following discussions in real time, all from the comfort of your home.
