Advanced English Dialogue for Business – Marketable securities

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.