Tax Glossary Definition
Bearer Securities – Financial instruments, such as shares or bonds, that grant ownership to whoever possesses them physically, without requiring registration in the holder’s name. These securities can be transferred merely by handing them over, which enhances their liquidity but also increases risks of misuse, theft, or loss because they offer complete anonymity.
Example: A bearer bond can be claimed or cashed by any individual who presents it to the issuer, as no official ownership record is kept.
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