Marketable Securities

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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.

BREAKING DOWN 'Marketable Securities'

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

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RELATED FAQS
  1. What are the characteristics of a marketable security?

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  3. What are some common examples of marketable securities?

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