Marketable Securities

Marketable securities are financial instruments that can be quickly bought or sold in public markets and easily converted into cash at a fair value. Their defining feature is high liquidity, which allows investors or companies to access funds rapidly without significant price impact.

Key Characteristics: High liquidity: Can be sold quickly in the market with minimal loss in value. Short-term maturity: Typically less than one year, making them suitable for cash management. Stable pricing: Market prices are generally less affected by trading volumes, ensuring predictable valuation. Can be used as collateral for loans or other financial arrangements. Examples: Treasury bills (T-bills) Commercial paper Certificates of deposit (CDs) Short-term government or corporate bonds