Was playing Red Dead 2 and the gang comes into some Bonds. Apparently they’re worth money but idk how the gang gets a profit from it, or how bonds work in civilian life.
In: Economics
Others have mentioned that these are “bearer bonds,” but not the most critical part of it:
A bearer bond is paid to ***whoever currently has the bond in their hands.*** That is, whoever “bears” the bond. They aren’t assigned to any named person, they aren’t handled by any special protocol or having any password or whatever. It’s literally just, “Whoever has this certificate, can come collect a certain amount of money at a specified time.”
THAT’S why they’re so lucrative. A bearer bond is effectively a gold brick you can keep in your pocket. Gold bricks don’t care where they came from, they’re just valuable. Same thing with bearer bonds. Such bonds aren’t used anymore because they make money laundering trivially easy.
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