Marketable Securities

Marketable securities are liquid financial assets that can be quickly converted into cash without significant loss of value. These securities are typically short-term investments that can be easily bought or sold in public markets, such as stocks, bonds, and Treasury bills. Companies often hold marketable securities to manage liquidity and ensure they have access to cash when needed. Because of their high liquidity, marketable securities are considered part of a company’s current assets.

Example

A company holds $2 million in marketable securities, including short-term government bonds and stocks, which can be quickly sold if cash is needed.