My grammar is 💯 good I
7296 Points
Joined March 2019
- Stocks, bonds, preferred shares, and ETFs are among the most common examples of marketable securities.
- Money market instruments, futures, options, and hedge fund investments can also be marketable securities.
- The overriding characteristic of marketable securities is their liquidity.
- There are liquid assets that are not marketable securities, and there are marketable securities that are not liquid assets.
- Every marketable security must still satisfy the requirements of being a financial security.
Since it is liquidity, it becomes short term and most short term are FVPL instruments when they are traded. Some of them are convertible to equity like preferred stock. It depends upon, trade vs. investment in equity. Equity is equity and has its own classification. Equity has owner ship interest and the marketable securities can be for trading purpose or ownership. Equity is classified as securities and derivatives as well. Please go through your instruments and I can understand maximum instruments working knowledge is necessary to come to classification. Instruments is complex and many dont have exposure please concentrate on principles first.