Question 2
Purchase and Sale of GoodsWhich of the following is not a negotiable instrument?
- A.Share certificate
- B.Cheque
- C.Bill of Exchange
- D.Dividend warrant
- E.Debenture
Show the answer and explanation
Answer: A (Share certificate)
Explanation
Cheques, bills of exchange, dividend warrants and bearer debentures can be transferred by delivery or endorsement; a share certificate cannot – shares are transferred by a transfer form.