Investment Securities

What are Investment Securities?

Generally, investment securities are securities purchased for investment purposes in order to generate an income, rather than for resale.

In the US, for a bank, an investment security is a marketable security held by the bank for the purpose of generating investment income and to improve liquidity. Only certain types of investment security are eligible to be held by a bank such as US Treasury securities.

For further information see the Wikipedia Investment Securities definition.

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