Bearer Paper Legal Meaning and Definition

Here is a simplified definition of the legal term Bearer Paper.

Bearer Paper (noun): This is a type of financial document that can be easily moved from one person to the next, simply through delivery or hand-off. The person who currently holds the paper, regardless of whether the original writer approved the transfer, now owns it. This new owner can therefore demand payment based on what the document represents. This makes Bearer Paper a useful tool in financial transactions and negotiations.