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What are investment securities?

Investment securities are a category of securities—tradable financial assets such as equities or fixed income instruments—that are purchased with the intention of holding them for investment. Banks often purchase marketable securities to hold in their portfolios; these are usually one of two main sources of revenue, along with loans.

Are Investment Securities a risky investment?

Income on such stock is variable depending on the risk, rate of return, liquidity, growth, marketability, etc. In case of sale of investment securities, such investments are risker as well as more liquid investments. These collective investment securities can easily be traded in primary as well as secondary markets.

Why are investment securities important?

Investment securities allow investors to balance risk by combining various asset classes. For instance, when stocks decline, bonds may hold their value or even rise, reducing potential losses. Are investment securities liquid?

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