Bearer bond

A Bearer Bond is a legal certificate that usually represents a bond obligation of, or stock in, a corporation or some other intangible property. They are no longer issued in the United States.

It is differs from normal stock in that no records are kept anywhere of the owner, or the transactions involving ownership. Whoever physically holds the bearer bond papers owns the stock or corporation. This is useful for investors and corporate officers who wish to retain anonymity. The downside is that in the event of loss or theft, bearer bonds are extremely difficult to recover. In Central America this is typically the standard procedure for owning and running companies.