security to bearer

security to bearer

Securities long been divided into bearer and registered. Historically, that for example in Germany, dominate the security to bearer, and in the United States and the United Kingdom - registered.
security to bearer is the kind of paper, where there is not registered by the name of the owner, nor in itself, anywhere or in any other place, and to make it entered into circulation it do not need to register. The fact that a security is to be the owner of, reaffirms the right to her property.
security to bearer - the Dignity of
If considered by the market participants, the security to bearer has a positive differences in comparison with the nominal, since the process of transfer of rights to the capital from the seller to the buyer (due to the transfer of securities) is faster, i.e., the speed of its calculation and treatment are very high. Apart from the expenses for the dissemination of such securities, its appeal to participants of the market requires almost no other costs associated with the «technology and technique of» market process. Thus, if the market is still in the stage of development, and to a certain extent the lack of capital to the creation of its infrastructure, then release the security to bearer in paper form will be the easiest, quickest and cheapest way of formation of the stock market and in particular the market of securities.
security to bearer and its form
security to bearer exists only in the documentary (paper) form. Transmit it to the common handed from one owner to the new owner. In each moment of time all of its actual owners are unknown, because it does not lead to permanent record of them.

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