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NEGOTIABLE. That which is capable of being transferred by assignment; a thing, the title to which may be transferred by a sale and indorsement or delivery.
     2. A chose in action was not assignable at common law, and therefore contracts or agreements could not be negotiated. But exceptions have been allowed to this rule in relation to simple contracts, and others have been introduced by legislative acts. So that, now, bills of exchange, promissory notes, bills of lading, bank notes, payable to order, or to bearer, and, in some states, bonds and other specialties, may be transferred by assignment, indorsement, or by delivery, when the instrument is payable to bearer.
     3. When a claim is assigned which is not negotiable at law, such, for example, as a book debt, the title to it remains at law in the assigner, but the assignee is entitled to it in equity, and he may therefore recover it in the assignor's name. See, generally, Hare & Wall. Sel. Dec. 158 to 194 Negotiable paper.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
Because the cost of hedging the nonmarketable security is the current price of the marketable security, it follows that applying a DLOM creates an opportunity to make risk-free profits, or arbitrage.
Because of this price differential, an arbitrage opportunity exists; the investor holding the nonmarketable security can sell (short) the marketable security, receiving $100 in proceeds.
Company A holds a marketable security with a fair value of $100, and Company B holds the same security, except that it is nonmarketable or restricted from sale for two years.
731 does not apply to the distribution of a marketable security if 1) the security was not actively traded on the date acquired by the partnership and the entity to which the security relates had no outstanding actively traded securities at the time the security was acquired by the partnership; 2) the security is actively traded as of the date of distribution; and 3) the security was held by the partnership for at least six months before it became actively traded and the security was distributed by the partnership within five years of the date on which the security became actively traded.
If more than one type of marketable security is distributed to a partner in any given year, the recognized gain is allocated among the distributed marketable securities in proportion to the built-in gain at the time of the distribution.
This makes the marketable security classification plausible.