THE BOND MARKET 
25; 
the bondholders. In some cases, indeed, American bond issues 
are issued both in bearer and registered form, but are not fully 
interchangeable; in such cases, quotations for each form must 
not only be separately made, but may differ somewhat from 
each other. 
American bearer or coupon bonds of course require no 
transfer and pass by delivery, since they state that the given 
debtor will pay interest and repay principal “to bearer.” While 
bearer bonds thus avoid delays, formalities, and expenses of 
transfer and are thus more easily negotiable, they also subject 
their holder to greater danger if he is dispossessed of them by 
theft or loss.® Payment of interest is obtained upon them by 
cutting off the attached coupons when they are due, and col- 
lecting their amounts through a bank or a brokerage house. 
An American registered bond, on the other hand, is payable 
to the individual or institution whose name is inscribed on its 
face; like the American registered share certificate, therefore, 
such a registered bond requires transfer when this ownership 
changes. To effect such transfer the registered bond certifi- 
cate, like the registered share certificate, has an assignment 
form printed on its back, which the holder can assign in blank. 
Since registered bonds have no coupons attached, interest is 
periodically remitted to their nominal holders by check, as 
with registered shares. At maturity the holder of a registered 
bond must present it properly transferred to bearer before jts 
principal amount can be paid to him. 
When a broker or dealer effects a sale in the bond market 
on the New York Stock Exchange, it is understood that the 
bargain is for a bearer bond, unless the contract specifically was 
made for a registered bond. Separate quotations are made for 
the two forms of bond, as the one is not a good delivery for the 
other. Since the primary price is usually made for the bearer 
bond, the price for a registered bond of the same issue is apt 
to prove a little higher to the purchaser and a little lower to the 
seller, than this current price for the bearer form, 
? See Chapter I, p. 28, and Appendix VId