Negotiable Instrument
What is a Negotiable Instrument?
A negotiable instrument is a signed document that gives the bearer of the document permission to obtain a certain amount of money.
How Does a Negotiable Instrument Work?
Checks are the most common negotiable instrument. They are essentially permission slips to take money out of someone's bank account. Promissory notes are also negotiable instruments, but really, almost any document whose possession can trigger the transfer of money from one entity to another is a negotiable instrument.
Why Does a Negotiable Instrument Matter?
A negotiable instrument allows people to transfer money among one another. Most negotiable instruments are unconditional promises to transfer money at some point in the future; accordingly, he who has the instrument essentially has the money.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
