What are examples of non-marketable securities?


Quick Answer

Examples of non-marketable securities include U.S. savings bonds, state and local government securities, domestic securities and foreign securities, according to the U.S. Treasury Department. Non-marketable securities are harder to sell and are non-transferable and must be held by the buyer until they mature, notes Investopedia.

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Full Answer

Non-marketable securities are harder to sell on the open market, and investors buy these securities over-the-counter or with a private transaction. These types of securities cannot be resold due to government regulations. For instance, a U.S. savings bond can only be cashed by the person whose name appears on the security. Limited partnership interests are some of the most difficult non-marketable securities to sell, according to Investopedia.

State and local government securities consist of certificates of indebtedness, notes or bonds through the U.S. Treasury's marketplace. These securities mature in 15 to 40 years, and interest is accrued daily. The interest rate on state and local government securities is based on the most recent auction of 13-week treasury bills.

Contrarily, marketable securities are easier to sell and can be re-sold after the initial purchase. Marketable securities include U.S. Treasury bills, notes and bonds sold on the open market. Principal and interest on marketable securities are higher than those of non-marketable securities, according to the U.S. Treasury as of November 2014.

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