bearer

Bearer is a noun derived from the verb bear, meaning a person who carries or possesses something. In law and commerce, the term often refers to the holder of a document or instrument, whose rights attach by possession rather than registration.

In finance, a bearer instrument is a negotiable instrument payable to the bearer. Examples include bearer bonds, bearer checks, and bearer shares. Ownership passes by delivery rather than endorsement, making transfer simple but increasing risks of loss or theft and creating regulatory and AML concerns. Because possession is enough to claim the rights, many jurisdictions have restricted or abolished bearer instruments to deter anonymous ownership and illicit activity.

In documents and titles, the bearer is the person who presents the document and is deemed entitled to its stated rights. This use applies to items like bills of lading, tickets, and certificates that are treated as bearer instruments. The bearer concept contrasts with registered instruments, where ownership is recorded in an official register.

In information security, a bearer token is a credential that grants access to a resource when presented by the holder. In OAuth 2.0 and similar systems, the Authorization header uses the format “Bearer <token>.” Bearer tokens require protection because possession equates to access; interception can lead to unauthorized use. Best practices include transport over TLS, short token lifetimes, and binding tokens to specific clients or audiences.

Common language uses include phrases such as “bearer of bad news” or “bearer of the certificate.” The term also appears in ceremonial contexts to denote the person who bears insignia or represents someone else.