1.2.5.2 Registered vs. Bearer Certificates
In the past, securities were issued as physical certificates in one of two forms: bearer form or registered form.
When the security is held in bearer form, the security is not registered in the issuing corporation’s books. There is no name on the certificate. Bearer securities are traded without any record of ownership, so physical possession of the security is the sole evidence of ownership. A bearer stock certificate is negotiable without endorsement and is transferred upon delivery. Bearer bonds, also called coupon bonds, are bond certificates that have no owner’s name printed on them and have coupons attached. Anyone who possesses the bearer bond certificate may present a coupon to receive an interes