Final answer:
To be considered negotiable, a negotiable CD must meet certain requirements including being in a standard denomination, having a fixed maturity date, and being issued by a recognized financial institution.
Step-by-step explanation:
In order for a negotiable CD (Certificate of Deposit) to be considered negotiable, it must meet certain requirements. One of the main requirements is that the CD must be in a standard denomination, typically ranging from $1,000 to $100,000. This ensures that the CD can be easily bought and sold in the secondary market. Additionally, the CD must have a fixed maturity date, typically ranging from 1 month to several years, and it must be issued by a recognized financial institution.