A bearer instrument is a document that indicates that the bearer of the document has title to property, such as shares or bonds. Bearer instruments differ from normal registered instruments, in that no records are kept of who owns the underlying property, or of the transactions involving transfer of ownership. Whoever physically holds the bearer bond papers owns the property. This is useful for investors and corporate officers who wish to retain anonymity, but ownership is extremely difficult to recover in event of loss or theft. A title is a prefix or suffix added to a persons name to signify either veneration, an official position or a professional or academic qualification. ... // Use of the term In common usage, property means ones own thing and refers to the relationship between individuals and the objects which they see as being their own to dispense with as they see fit. ... In finance a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REITs. ... In finance, a bond is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon). ... Everyday instance of theft: the bike which fits on this wheel has disappeared. ...

In general, the legal situs of the property is where the instrument is located. Bearer instruments can be used in certain jurisdictions to avoid transfer taxes, although taxes may be charged when bearer instruments are issued. In law, the situs (Latin for position or site) of property is where the property is treated as being located for legal purposes. ... A transfer tax is a direct tax that is paid when title to property is transferred. ... A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...

The United States has attempted to deal with tax evasion concerns by requiring a person who accepts a bearer instrument having a face value in excess of $10,000.00 as payment for goods or services in the ordinary course of business to file an information return with the Internal Revenue Service identifying the party who transferred the instrument. Failure to file the required return (Form 8300) is a felony under federal law. Seal of the Internal Revenue Service The Internal Revenue Service (IRS) is the United States government agency that collects taxes and enforces the tax laws. ... A felony, in many common law legal systems, is the term for a very serious crime, whereas misdemeanors are considered to be less serious offenses. ...

Under the Uniform Commercial Code, a negotiable instrument (such as a check or promissory note) that is payable "to bearer" may be enforced (i.e. redeemed for payment) by the party in possession. This is the letter of the law: in practice many merchants and financial institutions will not pay a check presented for payment by anyone other than the named payee. The Uniform Commercial Code (UCC) is one of the uniform acts that has been promulgated in attempts to harmonize the law of sales and other commercial transactions in the fifty state in the United States of America. ... A negotiable instrument is a specialized type of contract which obligates a party to pay a certain sum of money on specified terms. ... The word check has these meanings: In finance, a cheque (spelt check in American English) is an order for transfer of money. ... A promissory note is a contract detailing the terms of a promise by one party (the maker) to pay a sum of money to the other (the payee). ...

In earlier times many forms of government issued currency were actually bearer instrument giving the bearer property title to precious metals.

See also

• bearer bond