B
   
   Bearer Instrument
   















 

B

Bearer Instrument

The physical embodiment 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.

Glossary * B