Marketable securities are those securities/financial instruments that can be bought and sold in the market. While there are different marketable securities traded in the market, the commonly traded are shares (equity), bonds, cryptocurrencies, and derivatives.
In order to trade the marketable securities in a most efficient way, trading robots are utilized. Trading robots are artificial person equipped with the advanced program to monitor the financial market and in turn advice investors in gaining a fruitful return. Trading robots like Crypto Code offer multiple features to the investor to enjoy a successful return from their investment.
Here are the most commonly traded marketable securities in the financial market.
1) Stocks/Shares: Units of shares are called the “stock”. These are equity investments i.e. they own certain ownership in the company in which they invest shares. Investor holding shares in a company are called the “shareholders”. Pursuant to their investment, a shareholder is entitled to voting rights and dividends. Dividends are normally received based on the performance of a company. The value of shares depends on the company’s performance, growth, arrangements such as merger/amalgamation etc. However, this is one of the safest ways of investment if you are expecting a constant return.
2) Cryptocurrency market: Cryptocurrencies are digital currencies that are being exchanged between the parties directly without any intermediary. The transactions are settled and confirmed through strong cryptographic codes. This is completely an online digital platform that permits traders to directly trade without any centralized authority/ownership. Trading in this platform had grown exorbitantly. The commonly traded cryptocurrencies are Bitcoin, Ethereum, Litecoin, Ripple etc. The cryptocurrency transactions are highly secured. Since the transactions are verified using a strong algorithm and cryptographic codes, it is impossible to alter/change any transaction created in this platform. The chances of fraud are highly low.
3) Bonds: Bonds are the most common form of marketable securities after Stock. Though cryptocurrencies are trending in the market, the costs for trading cryptocurrencies are very high. Hence, considering the cost factor, an investor either invests in shares or bonds. A Bond is a security issued by the company or government (issuing entity) in an open market to borrow money from investors. Bond generates a fixed rate of return called the coupon rate for the fund invested. Each bond carries coupon rate and maturity rate i.e. the rate at which the company/issuing entity repays the full value of the bond. Unlike shareholders, bondholders don’t enjoy benefits apart from receiving the fixed rate of return from the issuing company.
In addition to the above, there are still commonly traded marketable securities that are available in the form of financial instruments, derivatives such as futures, options, rights, and warrants. There are also indirect investments such as hedge funds that are invested normally to mitigate the risk of an investment.