These are easily tradeable in the secondary market | These securities are not tradeable in the secondary market |
They have both market value and book value | They do not have market value |
They carry high risk because market fluctuations influence | They carry low risk because market fluctuations do not influence them |
Purchase rate depends on the type of security | Security holders purchase these securities at a discount rate |
Highly liquid | Highly illiquid |
Rate of return can fluctuate | High rate of return is guaranteed |
Examples include; Stocks, Treasury bonds, Exchange-traded funds, Derivatives, etc. | Examples include; saving bonds, rural electrified certificates, private shares, etc. |
Meena Khan