Bearer Instrument

The physical proof of ownership of a bond or stock. A bearer certificate provides the only evidence necessary (or possible) to prove that the holder is entitled to the benefits of ownership. The instrument, or a coupon detached from it, must be presented to collect any cash due to the owner. In contrast to registered instruments, the issuer does not maintain a record of ownership of bearer instruments.

© Copyright 1996, 1999 Gary L.Gastineau. First Edition.
© 1992 Swiss Bank Corporation.