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Marketability

L

Laura GARDINER

Member
Hi there,

I'm working my way through the CP1 notes and it keeps mentioning that the higher the number of issued shares or securities the more marketable they are... I am struggling with this as as thinking about supply and demand does a higher issue not mean that there is a higher supply so I would have thought therefore less marketable?

Although to counter that I guess having a higher issue in the first place means that the supply is met by an equal demand originally and this demand likely exceeds the supply, which makes them marketable in future?

Can someone help and let me know if my train of thought makes sense or if there is anything else I need to consider.

Many Thanks,
Laura
 
I believe marketability just refers to how easy things are to buy and sell, so bigger issue = larger market with more participants and transactions (usually).
 
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