You know, those no-questions-asked pieces of paper, bonds for large amounts of money that anyone can walk into a bank with and exchange for, say, a million dollars cash. And no questions asked. Okay, then, my real question (since hopefully you bothered to read this far) is:
What's the point of bearer bonds anyway. What use do they serve?
2007-03-04 15:37:46 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
They are now called coupon bonds. Now coupon bonds can take various forms. Early on they were iteams of value sold by the company. For instance a coupon bond from Johnson and Johnson could have coupons for free toothpaste. Now here is why they are also called bearer bonds, you have to physically present the coupon to get payment. Johnson and Johnson would just send you free toothpaste just because you bought the bond. Now those coupon bonds are mostly just strict cash that often gets added in the interest when looking at bonds. So if you have a thousand dollar coupon bond that has a coupon for $50, you can "cut out" the coupon, send it in and get a check for $50. The people you bought the bond is not to send you $50 just because you bought the bond.
2007-03-04 15:59:46 · answer #1 · answered by gregory_dittman 7 · 0⤊ 0⤋
yes, but hard to find.
and usually used for unscrupulous estate planning purposes, by the way. you might want to either find a new financial planner or God.
2007-03-04 17:39:56 · answer #2 · answered by mzimmerman@rocketmail.com 2 · 0⤊ 0⤋