Bearer Instrument

Definition of "Bearer instrument"

Scott Orsi
  Coldwell Banker Residential Brokerage

Unregistered stock or bond that pays the holder dividends (if stock) or interest (if bonds) as well as the selling price when sold (if stock) or principal (if bonds are held to maturity). Bearer means the security does not list the owners name, but rather payment is made to whoever presents the coupon. An endorsement of the instrument is not required for transfer.

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