Listen to a Business English Dialogue About Marketable securities
Sofia: Hi Samantha, do you know what marketable securities are in business and finance?
Samantha: No, I’m not familiar with that term. What are they?
Sofia: Marketable securities are financial assets that can easily be bought or sold on the open market, such as stocks, bonds, or Treasury bills.
Samantha: Oh, so they’re like investments that can be quickly converted into cash?
Sofia: Exactly. Marketable securities are highly liquid and can be used by companies to manage their cash flow or generate short-term returns.
Samantha: Are there different types of marketable securities?
Sofia: Yes, there are equity securities like stocks and debt securities like bonds, each with its own risk and return characteristics.
Samantha: How do companies use marketable securities?
Sofia: Companies may invest in marketable securities to earn a return on excess cash, hedge against risks, or meet short-term financial obligations.
Samantha: Can you give an example of a marketable security?
Sofia: Sure. A company might invest in shares of a publicly traded company or purchase Treasury bonds issued by the government.
Samantha: How are marketable securities valued?
Sofia: Marketable securities are valued based on their market price, which fluctuates in response to changes in supply and demand and other market factors.
Samantha: Thanks for explaining, Sofia. Marketable securities seem like a versatile tool for managing finances.
Sofia: No problem, Samantha. They provide flexibility and liquidity for companies to navigate changing market conditions.