Bearer form(redirected from Bearer Forms)
When securities are issued as paper certificates and the issuing corporation has no record of the owner, the securities are in bearer form.
The bearer, or holder, of the certificate is considered the owner, and when ownership changes hands a physical transfer of the certificate is required.
The securities may have attached coupons, which the holder must present or send in to the issuer or issuer's agent -- typically a bank or brokerage firm -- to receive interest or dividend payments.
Bearer securities are rare in the United States today because of the convenience, simplicity, and added security of electronic registration, known as book entry form. When book entry securities are traded, records of ownership are electronically updated, and the buyer's and seller's brokerage accounts are automatically debited and credited, similar to when you pay bills online.