Endorser

AAA

DEFINITION of 'Endorser'

A person who is authorized to sign a negotiable security in order to transfer ownership from one party to another, or to approve the terms and conditions of a contract. Endorsing a check before it is cashed or deposited is the most common and widely known example, but an endorser is also required to complete such transactions as transferring a car title or trading a financial security.

INVESTOPEDIA EXPLAINS 'Endorser'

Most people endorse a check to cash it, deposit it or sign it over to someone else. Signatures are usually required on the back of a check or financial instrument. Incorrectly endorsing a check can result in the bank returning the check to the issuer.

RELATED TERMS
  1. Morris Plan Bank

    A type of bank first established in 1910 to lend money to individuals ...
  2. Check

    A written, dated and signed instrument that contains an unconditional ...
  3. Cashier's Check

    A check written by a financial institution on its own funds. ...
  4. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  5. Certified Check

    A type of check where the issuing bank guarantees the recipient ...
  6. Negotiable

    1. Describing the price of a good or security that is not firmly ...
RELATED FAQS
  1. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Full Answer >>
Related Articles
  1. Options & Futures

    The Ins And Outs Of Bank Fees

    These service charges could nickel and dime you right out of your nest egg.
  2. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  3. Budgeting

    When Good People Write Bad Checks

    Overdraft protection can help when you overestimate your balance, but it will cost you.
  4. Home & Auto

    Tips For Maximizing The Value Of A Kitchen Touchup

    At a fraction of the cost of a remodel, a homeowner can make strategic updates to his or her kitchen that could transform this part of the home.
  5. Investing

    Why Are Consumers In Hesitation?

    Diverging monetary policy globally and a stronger dollar continued to be key drivers of the recent underperformance and last week’s tumble in U.S. stocks.
  6. Stock Analysis

    The Key to McDonald's? 70 Million Customers a Day

    Even when it has an underperforming year, McDonald’s is still one of the most profitable companies around.
  7. Chart Advisor

    Why Now is the Time for Food and Beverage Stocks

    As volatility rears its ugly head, it's natural to investigate stable sectors such as food and beverages. Here's an appropriately-named ETF to consider.
  8. Savings

    Why Is Deflation Bad For The Economy?

    While some inflation is good for economic growth, when prices begin to fall after an economic downturn, deflation may set in causing an even deeper crisis.
  9. Savings

    Profit From High Consumer Spending With Visa Or Mastercard

    American consumers have more money to spend thanks to falling gas prices. Investing in Visa and MasterCard may give investors more money, too.
  10. Savings

    The Top Ten Economic Indicators In The UK

    We list below ten key economic indicators for the United Kingdom, the world’s 6th-largest economy.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center