Pay To Bearer

AAA

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.

INVESTOPEDIA EXPLAINS '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. Pay To Order

    A check or draft that must be paid via endorsement and delivery. ...
  2. Check

    A written, dated and signed instrument that contains an unconditional ...
  3. Bank Draft

    A type of check where the payment is guaranteed to be available ...
  4. Bearer Bond

    A fixed-income instrument that is owned by whoever is holding ...
  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. Professionals

    Why Investors Need to Rebalance Their Portfolios

    The best way to explain why one should rebalance their portfolio is to show what could go wrong if one doesn't.
  5. Bonds & Fixed Income

    How do I calculate yield to maturity of a zero coupon bond?

    Find out how to calculate the yield to maturity for a zero coupon bond, and see why this calculation is more simple than a bond with a coupon.
  6. Bonds & Fixed Income

    Why are bond yields calculated in terms of basis points?

    Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply stating percentages.
  7. Personal Finance

    What Exactly Does A Portfolio Analyst Do?

    Portfolio analysts have the exciting role of working between the investment team layers and they touch various aspects of an investment organization.
  8. Investing Basics

    Why is buying a utility stock known as defensive move?

    Utility stocks are known as defensive stocks for investors due to the fact that consumer demand will remain high even when the economy is performing badly.
  9. Investing Basics

    How are dividends usually paid out?

    Discover the two compensation methods commonly used by companies and mutual funds to make dividend payments on equity investments.
  10. Trading Strategies

    How risky is it to enter into a debenture agreement?

    Understand the nature of debenture agreements and the inherent risks and clauses that may provide additional protection for bondholders.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center