Registered Shares

Definition:

A stock that is registered in the name of the exact owner. If the owner of such share sells his share, the new owner must register with name and address. Registered Shares offer issuers the ability to always know exactly who their shareholders are. Under the ‘33 Act shares (rather than the class) are registered, while under ‘34 Act, the class is registered.

Registered Shares also refer to, under the Securities Act, the shares registered pursuant to Section 5 for a specific Public Offering under the Registration Statement for that Public Offering in addition to a class of securities that is registered under the Exchange Act in connection with the listing of the shares. A share is deemed registered when the Registration Statement has become effective under Section 12 of the Exchange Act. Registration subjects the issuer to ongoing reporting requirements. Shares that are not registered are usually subject to restrictions on their resale under Rule 144.

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