Bearer form

Bearer form

Describes issue form of security not registered on the issuing corporation's books, and therefore payable to its bearer. See also: Bearer bond; coupon bond.

Bearer Form

A security containing no ownership information and for which the physical bearer is presumed to be the owner. In the case of bonds, coupons are physically attached to the bond and must be presented to the issuer to receive interest payments. Bearer stocks may be bought and sold without endorsement. Bearer bonds have not been issued in the United States since 1982, and thus they have become a significantly less important activity. Bearer stocks are also quite rare.

bearer form

Used to refer to any security that, according to the books of the issuing organization, is not registered to an owner. Essentially, a security in bearer form is owned by the person holding the security. Compare registered security.

Bearer form.

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.

References in periodicals archive ?
The Ministry of Finance has started placing treasury bonds in bearer form in the documentary series A in the amount of 100 million USD with a maturity of 24 months, the face value of $ 500 and interest rate of 9.
Monetary instruments" means coin or currency of the United States or of any other country, travelers' checks, personal checks, bank checks, money orders, investment securities in bearer form or otherwise in such form that title thereto passes upon delivery, and negotiable instruments in bearer form or otherwise in such form that title thereto passes upon delivery.
Holders of depositary receipts, in bearer form, for class B shares who are physically in possession of their depositary receipts should surrender these to ING (address: Physical Coupons - 3 , 60 Cours Saint Michel 1040 Brussels) in order to obtain new ordinary shares, either in registered form or in book-entry form.
Third, most corporate bonds were in bearer form, allowing securities to readily move between securities markets, both domestically and internationally.
Holders of Debentures in bearer form are advised to contact Computershare at 1-800-245-4053 for instructions regarding how to deposit their Debentures.
The Bonds will be issued in bearer form in the denomination of JPY 100,000,000 each.
Exempt OID and bearer bonds: Although it generally has not been possible to issue exempt bonds in bearer form since 1982, older exempt bonds in bearer form may still be in circulation.
Many institutional investors kept their bonds in bearer form so that the bonds could be delivered quickly in the event of sale; in the early 1960s, more than 90 percent of marketable Treasury debt was held in bearer form.
The second held that the very nature of sovereign bonds--tradable, widely-disbursed, often in bearer form, sometimes held by astonishingly naive investors--rendered them practically, if not legally, immune from mandatory restructuring exercises.
These money orders were all purchased from institutions in the New York City area and were issued in bearer form, then stamped payable to the order of one account number.
The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and Notes in bearer form are subject to US tax law requirements.
being obligations in bearer form to registered form, and (b) make