Blank Endorsement

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DEFINITION of 'Blank Endorsement'

A signature by the creator of an instrument, such as a check, which enables any holder of the instrument to assert a claim for payment. Because no payee is specified, such an endorsement essentially turns the instrument into a bearer security.

BREAKING DOWN 'Blank Endorsement'

The most well-known example of a blank endorsement is a check made payable to "cash" and endorsed on the back with the signature of the account holder. Blank endorsements are much more risky than pay-to endorsements. If the instrument is lost, it can be negotiated (cashed in or deposited) by anyone who finds it.

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    A blank-check company is a development-stage company that either does not have an established business plan or its business ... Read Full Answer >>
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