bearer bond

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A security where the person or organization holding the certificate of title is entitled to receive any interest and redemption payments. Such securities have no central register of holders; the owners are thus at considerable risk of loss by theft or accident. Bearer bonds are attractive to anybody seeking to remain anonymous in order to avoid taxation, controls on capital movements, or legal checks on the laundering of money derived from criminal activities. They are therefore illegal in some countries, including the UK.

Subjects: Economics.

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