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Marketability is the ease with which a security (stocks, bonds, etc.) can be bought or sold in the secondary market, typically through a securities or stock exchange. Marketability tends to affect the price of a security in that one with high marketability usually attracts high trade volume and the demand increases significantly. Securities that are more marketable or liquid generally trade at prices that are closer to their intrinsic value. 

 

 

It is very important when you invest in securities that you ensure that such securities can be readily converted to cash if you so desire. As an investor, you may not be aware of the marketability of a particular security but you should ensure that your broker, fund manager or investment advisor explains the level of marketability of your investment. For more information on the marketability of securities and how you can become an investor call ECFH Global Investment Solutions at 457-7233.