Pay To Bearer

DEFINITION of 'Pay To Bearer'

Any check or draft that can be transferred to the holder by delivery without having to be endorsed. As the name implies, "pay to bearer" refers to any negotiable instrument that is simply paid to the bearer without requiring proof of identity. Pay-to-bearer instruments are not registered in the name of a specific owner and will pay to whoever bears them.

BREAKING DOWN 'Pay To Bearer'

A bearer bond is one type of pay-to-bearer instrument. These bonds pay interest for each detachable coupon redeemed, regardless of who redeems them.

RELATED TERMS
  1. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  3. Bearer Bond

    A fixed-income instrument that is owned by whoever is holding ...
  4. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Negotiable

    1. Describing the price of a good or security that is not firmly ...
Related Articles
  1. Budgeting

    Should You Pay In Cash?

    Avoiding all forms of plastic payment can do wonders for your stress level and pocket book.
  2. Personal Finance

    Bearer Bonds: From Popular To Prohibited

    These coupon bonds are transferable, negotiable and anonymous - so why aren't they sold in the U.S.?
  3. Options & Futures

    Getting To Know The Money Market

    If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash.
  4. Savings

    The Difference Between Compounding Interest and Simple Interest

    Interest is the cost a borrower pays to use someone else’s money. Interest can be either simple or compounded.
  5. Products and Investments

    Advisors: Watch Out for Confirmation Bias

    Here's how advisors can make sure that confirmation bias does not color their own perceptions as they manage clients’ portfolios.
  6. Investing News

    AQR Capital Management: Investment Manager Highlight

    Discover the investment strategies and secrets of hedge fund powerhouse AQR Capital Management LLC in the alternative investment space.
  7. Economics

    Global Trade in 2015: Worst Since the Financial Crisis

    Find out why the global trade reversal in 2015 was the worst since the financial crisis happened, and what it means for the future.
  8. Taxes

    How Are Collectibles Taxed?

    If you plan to sell collectibles, it's imperative that you know the tax implications.
  9. Stock Analysis

    3 Stocks to Get Exposure into Iran's Deal (BA, GE)

    Explore three companies that may benefit from the Iran nuclear pact, as well as the reasons these companies are taking a cautious pace with their first steps.
  10. Stock Analysis

    A look into Warren Buffett's biggest holdings (KHC, IBM)

    What do Kraft and IBM have in common? They are two of the most profitable surging stocks in Warren Buffett’s iconic hedge fund.
RELATED FAQS
  1. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ... Read Answer >>
  2. What are the advantages and disadvantages of mutual funds?

    Mutual funds are currently the most popular investment vehicle and provide several advantages to investors, including the ... Read Answer >>
  3. Where do investors tend to put their money in a bear market?

    A bearish market is traditionally defined as a period of negative returns in the broader market to the magnitude of between ... Read Answer >>
  4. How can I prevent commissions and fees from eating up my trading profits?

    First off, understand that there is no universal system regarding trading commissions charged by brokerage firms. Some charge ... Read Answer >>
  5. What's the difference between a load and no-load mutual fund?

    A mutual fund is simply a large group of people who lump their money together for a management company to invest. And, like ... Read Answer >>
  6. How often should I rebalance my retirement account?

    Learn how to rebalance your retirement portfolio as you age, and how to redistribute profits from outperforming funds to ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center