As the risk of an instrument increases, its price declines, thereby increasing its expected rate of return. This may be due to a market valuation based on reasons in addition to risk for instance, humanitarian motives. Both liquidity and marketability deal with the ease of selling an instrument. The distinction lies in the selling price. Therefore, liquid investments are a subset of marketable assets.
Investments require varying degrees of attention and effort.
Minimum investment levels can range from a few dollars to open a savings account to millions of dollars for some select mutual funds. Investors should assess the minimum investment level along with appropriateness and affinity. Some investors screen their investments in order to hold only the assets that are associated with products or services that reflect or do not conflict with their belief systems. They may therefore sacrifice return for peace of mind. Long-term capital gains are taxed at a maximum rate of 20 percent.