Non-Marketable Security

DEFINITION of 'Non-Marketable Security'

Any type of security that is difficult to buy or sell because it does not trade on a normal market or exchange. These types of securities trade over the counter (OTC) or in a private transaction. Finding a party with which to transact business is often difficult; in some cases, these securities can't be resold due to regulations surrounding the security.

INVESTOPEDIA EXPLAINS 'Non-Marketable Security'

Some examples of non-marketable securities are savings bonds, series (A, B, EE, etc.) bonds and private shares. The U.S. government offers both marketable and non-marketable securities to the public. Marketable securities, such as treasury bills and bonds can be purchased and resold to the public. But non-marketable securities, such as savings bonds, must be held by the holder until maturity and can't be resold to another party.

Limited partnership (LP) interests are often difficult, if not impossible to resell.

RELATED TERMS
  1. Thinly Traded

    An asset that cannot easily be sold or exchanged for cash without ...
  2. Series EE Bond

    A non-marketable, interest-bearing U.S. government savings bond ...
  3. Marketable Security

    Any equity or debt instrument that it readily salable and can ...
  4. Illiquid

    The state of a security or other asset that cannot easily be ...
  5. Bond

    A debt investment in which an investor loans money to an entity ...
  6. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
Related Articles
  1. The Money Market: A Look Back
    Bonds & Fixed Income

    The Money Market: A Look Back

  2. What's the difference between bills, ...
    Investing

    What's the difference between bills, ...

  3. What's the difference between short-term ...
    Investing

    What's the difference between short-term ...

  4. Why should I keep records on my tax-exempt ...
    Taxes

    Why should I keep records on my tax-exempt ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...