Bearer security financial definition of Bearer security
bearer instrument (redirected from Bearer security)
that contains no ownership information and whose physical bearer is presumed to be the owner
. Bearer instruments may be bought
. Due to the increased digitization of the market
, they are quite rare.
A security that does not include the name of the owner or payee. Anyone in possession of the instrument may present it and receive payment.
References in periodicals archive
Once a bearer security
has been issued, money launderers or terrorist financiers can hold these securities or transfer them to an intended recipient" without using reputable financial facilities that would even record a transaction, let alone conduct know-your-customer checks.