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
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