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A benefit of using bearer shares in corporate formations is that bearer shares are:
Correct Answer: D
Bearer shares are unregistered equity securities owned by the possessor of the physical share documents. The issuing company does not record the identity or ownership of the shareholders, nor does it track the transfers of ownership. This means that the holder of the bearer share can claim ownership and exercise the rights associated with the share, such as voting and receiving dividends, by simply presenting the physical certificate. This also makes the transfer of ownership very easy, as it only requires the delivery of the physical document, without any formalities or intermediaries. Bearer shares are therefore attractive for those who seek anonymity, privacy, and flexibility in their corporate structures. References: * Investopedia: Bearer Share * SuperMoney: Bearer Shares: Definition, Examples, and Implications * ACAMS: Bearer Shares