Bearer Form

A A A

DEFINITION

A security not registered in the issuing corporation's books but that is payable to its bearer (the person possessing it). Securities can be issued in two forms: registered or bearer. Registered form means the issuing firm keeps records of a security's owner and mails out payments to him or her. Bearer form means the security is traded without any record of ownership, so physical possession of the security is the sole evidence of ownership. Most securities issued today are in registered form.

INVESTOPEDIA EXPLAINS

A bearer bond, also known as a coupon bond, has coupons that must be clipped from the security and presented in order to receive interest payments. The issuer will not remind the bearer of coupon payments.

A bearer stock certificate is negotiable without endorsement and is transferred upon delivery.


RELATED TERMS
  1. Blank Endorsement

    A signature by the creator of an instrument, such as a check, which enables ...
  2. Coupon Bond

    A debt obligation with coupons attached that represent semiannual interest payments. ...
  3. Custody-Only Trading

    A system in which shares must be registered to the holder by name and can only ...
  4. Holder Of Record

    The name of the person who is the registered owner of a security and who has ...
  5. In Street Name

    A brokerage account where the customer's securities and assets are held under ...
  6. Book-Entry Securities

    Investments such as stocks and bonds whose ownership is recorded electronically. ...
  7. Street Name

    When securities are held in the name of a broker or other nominee, as opposed ...
  8. Stock Record

    An electronic system that helps brokerage firms keep track of the positions, ...
  9. Stock Power

    A legal power of attorney form that transfers the ownership of certain shares ...
  10. Bearer Share

    An equity security that is wholly owned by whoever holds the physical stock ...
Related Articles
  1. How does the money from the interest ...
    Investing

    How does the money from the interest ...

  2. My family owns an old railroad bond ...
    Investing

    My family owns an old railroad bond ...

  3. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  4. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  5. Has Stock Bias Affected Your ETF Asset ...
    Bonds & Fixed Income

    Has Stock Bias Affected Your ETF Asset ...

  6. Buying bonds at a premium? Note these ...
    Bonds & Fixed Income

    Buying bonds at a premium? Note these ...

  7. Is Ukrainian Debt Worth a Look?
    Bonds & Fixed Income

    Is Ukrainian Debt Worth a Look?

  8. Will The High Times In High Yield Continue? ...
    Bonds & Fixed Income

    Will The High Times In High Yield Continue? ...

  9. Unconstrained Investing: What It Is ...
    Bonds & Fixed Income

    Unconstrained Investing: What It Is ...

  10. How To Earn The Most From CDs When Interest ...
    Bonds & Fixed Income

    How To Earn The Most From CDs When Interest ...

comments powered by Disqus
Hot Definitions
  1. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Trading Center