BS(609)

A Negotiable Instrument is a:
(1) written instrument,
(2) signed by the maker or drawer of the instrument,
(3) that contains an unconditional promise or order to
pay
(4) an exact sum of money (with or without interest in a
specified amount or at a specified rate)
(5) on demand or at an exact future time
(6) to a specific person, or to order, or to its bearer.
Quasi negotiable instrument:
Quasi negotiable instruments are those which are capable of being transferred by delivery or
endorsement but the transferor of the document cannot give a better title to holder that he himself
had
There are some negiotiable instruments which are recognized by usage or custom some of their
types are
Dividend warrant:
A document that shows that a shareholder is entitled to a dividend. Dividend is the part of profits
payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its
shareholders instead of paying dividends in the form of cash in the form of document by
mentioning the Warrant Price and other details.The price mentioned in it is also called exercise
price. Some times company may not specify the name of the holder. The holder of the document
can fill it.
Share warrant:
Equity shares or stocks are the only investment that comes to our mind when the stock market is
doing well. However, there are other means like warrants which can help us reap benefits from
rising stock markets. Warrants are not only the other way of participating in companies good
performance but they are also more cost efficient in terms of overall returns.

In simple terms, a warrant is like an option issued by a company that gives the holder the right to
buy stock from the company at a specified price within a certain designated time period.
Generally speaking, warrants are issued by the company whose stock underlies the warrant and
when an investor exercises a warrant, he or she buys stock from the company. A stock warrant is
a way for a company to raise money through equity (stocks). A stock warrant is a smart way to
own shares of a company because a warrant usually is offered at a price lower than that of a
stock option.
Like an option, a warrant does not represent actual ownership in the stock of the company and it
is simply the right (but not the obligation) to buy shares at a certain price in the future.
Bearer Debentures:
The debentures which do not specify the name of the owner are called bearer specify debenture.
These can be transferred by mere delivery. Interest will be paid to the one who displays the
interest coupon attached to the debenture. Holder of bearer debentures is entitled to get the
interest.
Government Promissory Note:
A promissory note is an IOU. Some of you may be used to writing your friends or family IOUs
for say a tenner or similar amounts, but governments and banks deal in much bigger amounts
with slightly more complex arrangements.
However the fundamentals are similar. Usually promissory notes will carry conditions such as
agreeing to pay back a specific sum at a fixed date in the future with interest and crucially,
distinguishing them from actual IOUs, they contain a specific promise to pay the money.
The Government Promissory Note is a legal document in which you promise to repay your loan
and any accurade interest and fee to the department of education