Example of Negotiable Securities
Finance / / July 04, 2021
In economics and finance, negotiable values are money market tools that can easily be converted into cash, which earn interest at very short term so they are used by companies to obtain a good return on temporary funds inactive. They are considered as an important source of immediate liquidity for companies. The negotiable values They can be used in different ways, such as resources, security funds, transactions, speculative stocks, treasury certificates, tax credit bonds, letters of credit or credit agreements repurchase.
Example of negotiable securities:
Treasury certificates, known in Mexico as CETES, are one of the best examples of negotiable securities. These certificates are public debt securities that are offered by the government, which obtains liquidity thanks to their sale. With that money, payments are made and invested as capital for works, services and social programs. Thanks to their characteristics, CETES are highly demanded. They are paper in money and can be changed quickly without losing value.