What type of note is transferable and assignable?

A negotiable instrument is a type of note that is transferable and assignable. This means that the rights to the payment or obligations under the note can be transferred to another party without needing the consent of the original issuer. This transferability is a key feature of negotiable instruments, making them useful in financial transactions where parties may wish to sell or pass on their rights to receive payment.

Other types of notes, such as option notes, convertible notes, or subordinated notes, do not have the same level of transferability inherent in their definitions. For example, convertible notes often come with specific terms regarding conversion into equity, and subordinated notes may have limitations based on their ranking in terms of payment priority. Thus, the characteristics that define a negotiable instrument make it the correct choice as the type of note that can be easily transferred and assigned.