December 25, 2020

Marketable securities

Marketable securities

  • Assets that can be liquidated to cash quickly
    • i.e., short-term liquid securities
    • e.g., common stock, Treasury bills, and money market instruments, etc.
  • Can be bought or sold on a public stock exchange or a public bond exchange
  • Tend to mature in a year or less and can be either debt or equity
  • Why having? 
    • Instead of holding on to all the cash in its coffers which presents no opportunity to earn interest, a business will invest a portion of the cash in short-term liquid securities
https://cdn.financewalk.com/wp-content/uploads/2012/10/Marketable-securities.jpg


No comments:

Post a Comment