To Be Negotiable, the Instrument Must Satisfy All Except Which

question 9

Multiple Choice

To be negotiable, the instrument must satisfy all except which one of the following requirements?

• A) It must contain a promise or order to pay.
• B) It must be for a certain amount.
• C) It must be payable on demand.
• D) It must be signed.

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Definitions:

Declare Dividends

The action by a company's board of directors to distribute profits to shareholders.

Par Value

The face value of a bond or stock as set forth in its certificate.

Two-For-One Stock Split

An action by a company to increase its number of shares by dividing each existing share into two, often to make the stock more affordable.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership interest in a corporation.