Wednesday, 10 August 2016

Marketable Security

Marketable securities are financial instruments that can be readily bought and sold in a public market.  The key feature is the ease with which it can be sold and converted into cash.  Usually, marketable securities are in the form of equity or government bonds.  The equity can be shares in a corporation or other type of business entity like a master limited partnership or real estate investment trust. 
For the securities issuers, the fact that the securities have an available market is a big advantage.  If they need to raise money, they can quickly and easily sell securities in the market for cash. 

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