BEARER INSTRUMENT
A bearer instrument, or bearer bond, is a kind of permanent earning security where no information about the owner is filed and the security is given in tangible form to the buyer.
The individual who holds this, is acknowledged as the owner, and whoever holds this physical bond is authorized to the coupon payments.
To get the coupon payments, the holder of the bond must pin the coupons included to the bond and send them for payment. This is different with book-entry, where the information of the holder is filed in a data processing machine file keeper and there are no tangible bond certificates.
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