bearer security

Popular Terms
Share, bond, or debenture whose owner's name is not recorded (registered) in the register of the issuer, and which is payable to its holder or presenter. Ownership (title) of such securities is transferable merely by handing over or delivery and, therefore, they are secured with the same care as is cash. The main benefit of a bearer security is preservation of the owner's anonymity. Dividend or interest on bearer securities is claimed by presenting the attached coupon to the issuer or its agent.


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