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Securities

Securities

Securities are investments that allow you to own things without physically holding onto them.

Examples: Stocks & Bonds

Marketable Securities

  • Investments
  • Easily bought and sold in a public market
  • Stocks, bonds, mutual funds, and certificate of deposits

Non-marketable securities

  • Debts
  • Difficult to buy and sell
  • Government bonds and private company shares

Marketable = things that can be sold

Non-Marketable = things that can’t easily be sold

“Securities” in the name may be a bit misleading.

Securities are not secures with collateral (assets that a borrower offers a lender to secure a loan).

Why invest in securities?

To build a healthy portfolio, it is important to have a mix of both types of securities.

Two Categories of Marketable Securities

Equity securities

Provide partial ownership in an investment.

Debt securities

Represent an obligation for repayment.

Non-Marketable Securities

Are difficult to buy or sell because they do not trade on a traditional market and are sometimes non-transferable.

Why Invest In Non-Marketable Securities?

They make great gifts since they can easily be purchased for others.

Why Invest In Marketable Securities?

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case” – Robert G. Allen


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