Remember that dream you had in which you found a blank check that was signed by the account holder, and you took a trip to the bank, followed by a shopping spree?
That’s a type of “blank endorsement.” A check made payable to “cash” is the most well-known type of blank endorsement. Because it says “cash” instead of someone’s name, the check is similar to cash, in that it can be used by anyone.
Blank endorsements are things like checks (i.e. “financial instruments”) that are signed off by the account owner, but without a payee specified. Don’t try blank endorsement at home, kids.
Related or Semi-related Video
Finance: What is a Comfort Letter?6 Views
Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]
that comforting okay okay comfort letter is a letter
this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]
attorney in one form or another who has done deep due diligence into a company
looked at myriad details and data and volume counts of plastic cubes in their
inventory and then they've looked at their distribution contracts
you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]
looked at their bank accounts both the onshore ones and the offshore ones that
you know they don't really like to talk about and then about 87 ish other things
that all those people look at and then they write a letter like an actual
letter which is usually given to the Board of Directors or an acquirer or
the investigating party whoever that is and that letter states that what the
company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]
thing to know so this letter well it just gives comfort to everyone
the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]
Up Next
What is collateral? Any type of asset or property that a borrower pledges as security for a loan is classified as collateral. As the lender has a c...
What is a Banker’s Acceptance Note? Banker’s acceptance notes are short-term debts that companies can issue; they differ from general debt offe...
What is a Blank Check Company? A Blank Check Company is a company that is just starting out. They are often created as new penny stocks that presen...
What is a Co-signer? A Co-signer is a 3rd party who agrees to also be held liable for a financial obligation in the event that the primary signer d...