When you meet someone in an abandoned parking lot to sell a suitcase full of stolen game-used jock straps from NBA players, you are likely to demand cash. No names. No paperwork.
However, for other commerce, a negotiable instrument represents a useful alternative. If you legitimately buy your game-used jock straps from the NBA players, complete with bills of sale and all the other legal niceties, you're happy to accept other forms of payment. A personal check, for instance...that represents the most common negotiable instrument.
The term refers to any document that guarantees payment of an amount of money. It typically designates the payer and the payee, and promises to provide cash on demand. It prevents people from having to carry around large chunks of cash all the time.
It's negotiable because, if needed, it can be signed over to someone else. Or, in the case of the check, it can be deposited in the bank, or exchanged for cash (though your bank might have rules about whether it will cash a check without deducting some fee).
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Finance: What is a Bearer Bond, or Beare...20 Views
Finance a la shmoop... what is a bearer bond or bearer stock alright you know
that saying possession is nine-tenths of the law
right well that's how bearer bonds and stocks work if you have the paper [Man presenting a bond]
representing the bond or stock aka the bond or stock certificate itself in your
hot little hands or wallet well then you own the bond or stock whether you stole
it or bought it or you know 3D printed it...In bearer bonds and
stocks there's no record or tracing of who bought or owned the bond or stock
sort of the opposite of how Bitcoin works and because of this non tracing [Money in a laundry machine]
and the ease with which money could be laundered for our kindly loving
terrorist friends bearer bonds and stocks are not very common today because
investors simply don't like the idea that their precious assets can be stolen [Thief running from police with money]
and then used to you know match plaid with stripes to counter this anonymity
most securities are in fact registered meaning that ownership is filed
officially with a brokerage or an issuer ie the company itself so that money can [A tracker appears]
be tracked and well taxed all over the world and note that one way bearer bonds
or stocks are dealt with in the fashion realm is to you know simply get rid of
the E don't look....[Man walking on a catwalk with no clothes]
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