marketable security


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Related to marketable security: Debt security

Negotiable

A security that may be bought or sold. Generally, a negotiable security is traded on the secondary market, but the initial sale takes place on the primary market. Negotiable securities may be low-risk, such a Treasury bonds, or high-risk, such as stocks. They are also known as marketable securities. See also: Nonmarketable security.

marketable security

A security that may be resold by one investor to another. Most securities are marketable; they develop secondary markets for trading. Also called negotiable security.
References in periodicals archive ?
A nonmarketable security is equivalent to a marketable security less the ability to sell the security over the nonmarketable period.
Marketability equivalence put option, where the nonmarketable security is equivalent to the marketable security less a put option with the length of the nonmarketable period and an exercise price equal to the fair value of the marketable security at the end of tire nonmarketable period.
Marketability equivalence forward purchase agreement, where the nonmarketable security is equivalent to a forward contract to purchase the marketable security at a price of zero at the end of the nonmarketable period.
731 does not apply to the distribution of a marketable security if 1) the security was not actively traded on the date acquired by the partnership and the entity to which the security relates had no outstanding actively traded securities at the time the security was acquired by the partnership; 2) the security is actively traded as of the date of distribution; and 3) the security was held by the partnership for at least six months before it became actively traded and the security was distributed by the partnership within five years of the date on which the security became actively traded.
If more than one type of marketable security is distributed to a partner in any given year, the recognized gain is allocated among the distributed marketable securities in proportion to the built-in gain at the time of the distribution.