Legal Definitions - marketable security

A marketable security is a type of investment that can be easily bought and sold on a financial market. It is a type of security, which is an instrument that shows ownership or creditor rights in a company or government.

Examples of marketable securities include:

• Stocks: These represent ownership in a company and can be bought and sold on a stock exchange.
• Bonds: These represent a loan to a company or government and can be bought and sold on a bond market.
• Options: These give the holder the right to buy or sell a security at a certain price and can be bought and sold on an options market.

The value of a marketable security depends on various factors, such as the financial health of the company or government that issued it, and the demand for it in the market. For example, if a company is doing well, its stock price may go up, making it more valuable for investors to buy and sell.

Overall, marketable securities are a way for investors to make money by buying and selling ownership or creditor rights in companies or governments.