Bearer Form


DEFINITION of 'Bearer Form'

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.


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.

  1. Blank Endorsement

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

    A debt obligation with coupons attached that represent semiannual ...
  3. Holder Of Record

    The name of the person who is the registered owner of a security ...
  4. Book-Entry Securities

    Investments such as stocks and bonds whose ownership is recorded ...
  5. Custody-Only Trading

    A system in which shares must be registered to the holder by ...
  6. In Street Name

    A brokerage account where the customer's securities and assets ...
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