A(n)________ is required to negotiate order paper,but not to negotiate bearer paper.
A) security
B) collateral
C) indorsement
D) warranty

Question

Quizplus · Accepted Answer

Indorsement is the act of transferring ownership of a negotiable instrument from one party to another. It is required for negotiating order paper, where the transfer of ownership requires the indorsement of the holder. However, in case of bearer paper, possession of the paper itself is sufficient for transfer of ownership and hence indorsement is not required. Securities, collateral, and warranty are not relevant to the question of negotiating paper.

A(n)________ Is Required to Negotiate Order Paper,but Not to Negotiate