negotiable instrument

negotiable instrument definition - finance
A written order to transfer money from one person to another. A negotiable instrument may be a check, a bill of exchange, or a promissory note but most often it is a check written on a checking account. The instrument must be signed by the writer, have the payeeÂ’s name on it, and must list a specific amount of money that is payable upon demand.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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