Asked by Ana Bel Montes on Jun 03, 2024
Verified
Negotiability invests negotiable instruments with a high degree of marketability and commercial utility by allowing them to be freely transferable and enforceable by a person with the rights of a holder in due course against a person obligated on the instrument.
Negotiability
The characteristic of a financial instrument that allows it to be transferred from one party to another in a form of exchange.
Holder in Due Course
A term referring to a party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.
Marketability
The ease with which an asset or security can be sold or bought in the market without affecting its price.
- Comprehend the basic concepts underlying negotiable instruments.
- Comprehend the legal implications of becoming a holder in due course.
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Learning Objectives
- Comprehend the basic concepts underlying negotiable instruments.
- Comprehend the legal implications of becoming a holder in due course.
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