What do marketable securities typically provide to investors?

Marketable securities primarily offer investors short-term capital appreciation and liquidity. These financial instruments, which can include stocks, bonds, and other investments that are easily tradable in the financial markets, are designed for quick access to cash and the potential for short-term gains. Their high liquidity means that investors can buy and sell them with relative ease compared to other types of investments, which is particularly beneficial for those who may need to access their funds quickly or take advantage of market opportunities.

The characteristics of marketable securities align well with the needs of investors seeking a combination of quick returns and ease of transaction. They usually do not promise the stable, long-term income that one might expect from fixed-income investments or real estate, nor do they inherently provide tax benefits, which are usually associated with other investment types like retirement accounts.