Marketable Securities


DEFINITION of 'Marketable Securities'

Very liquid securities that can be converted into cash quickly at a reasonable price.

Marketable securities are very liquid as they tend to have maturities of less than one year. Furthermore, the rate at which these securities can be bought or sold has little effect on their prices.


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BREAKING DOWN 'Marketable Securities'

Examples of marketable securities include commercial paper, banker's acceptances, Treasury bills and other money market instruments.

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  3. Money Market

    A segment of the financial market in which financial instruments ...
  4. Banker's Acceptance - BA

    A short-term debt instrument issued by a firm that is guaranteed ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, ...
  6. Government Security

    A bond (or debt obligation) issued by a government authority, ...
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  1. What are the characteristics of a marketable security?

    The overriding characteristic of marketable securities is liquidity, or the ability to convert securities into cash and use ... Read Full Answer >>
  2. How does JIT (just in time) production affect ROI (return on investment)?

    The just in time, or JIT, production model has numerous benefits for businesses looking to limit their inventory-related ... Read Full Answer >>
  3. What are some common examples of marketable securities?

    Marketable securities are investments that can easily be bought or sold on the open market. The high liquidity of marketable ... Read Full Answer >>
  4. What's the difference between short-term investments in marketable securities and ...

    Most of the time, when an investor or analyst searches through the financial statements of a publicly traded company, he ... Read Full Answer >>
  5. I have a short period of time (1 year or less) during which I will have money to ...

    If you only have a short period of time in which to invest your money (i.e. less than one year), there are several investment ... Read Full Answer >>
  6. Are mutual funds considered cash equivalents?

    Though all mutual funds are considered liquid assets, only certain funds are considered cash equivalents. What Is a Cash ... Read Full Answer >>

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