What does bearer security mean?

bearer security meaning in Law Dictionary

protection which can be transmitted or used by the owner, which may or may possibly not be the BENEFICIAL OWNER. Many securities are given in bearer form, which gets rid of the full time and expense involving reregistration. See additionally SIGNED UP SECURITY.

bearer security meaning in Business Dictionary

Share, bond, or debenture whoever owner's name's maybe not taped (signed up) within the register associated with the issuer, and which will be payable to its owner or presenter. Ownership (title) of such securities is transferable merely by handing over or distribution and, therefore, these are typically guaranteed with the exact same treatment as is cash. The advantage of a bearer security is preservation for the owner's privacy. Dividend or interest on bearer securities is claimed by showing the affixed coupon towards the issuer or its agent.