Transferable Securities
Transferable securities are financial instruments that can be bought or sold between investors in a market. These securities can include stocks, bonds, mutual funds, and other tradable assets. The key feature of transferable securities is their ability to be transferred from one investor to another, providing liquidity and facilitating the flow of capital in financial markets.
Example
Shares of publicly traded companies, such as those on the New York Stock Exchange, are considered transferable securities because they can be easily bought and sold between investors.
Key points
• Financial instruments that can be traded between investors in the market.
• Include stocks, bonds, mutual funds, and other tradable assets.
• Provide liquidity and ease of transfer in financial markets.