A
bearer instrument is a document that entitles the holder of the document rights of ownership or
title to the underlying
property, such as
shares or
bonds. Bearer instruments differ from normal
registered instruments, in that no record is kept of who owns the underlying property, or of the transactions involving transfer of ownership. Whoever physically holds the bearer document is assumed to be the owner of the property. This is useful for investors and corporate officers who wish to retain anonymity, but ownership (or legal entitlement) is extremely difficult to establish in event of loss or
theft.