Question

A certificate of stock is not a negotiable instrument because it lacks the requirement of

A. The instrument must be in writing and signed by the maker or drawer
B. It must contain an unconditional order or promise to pay a sum certain in money
C. It must be payable to order or to bearer
D. It must be payable on demand or at a fixed or determinable future time

Answer 1

A certificate of stock is not a negotiable instrument because it lacks the requirement of being in writing and signed by the maker or drawer.

Step-by-step explanation:

A certificate of stock is not a negotiable instrument because it lacks the requirement of A. The instrument must be in writing and signed by the maker or drawer. A certificate of stock is a document that represents ownership in a company. While it can be transferred to another person, it does not meet the criteria of a negotiable instrument as defined by the Uniform Commercial Code (UCC).