What are Marketable Securities?

Marketable Securities (Definition)

Marketable securities are assets that can be quickly turned into cash. Marketable securities are very easy to buy and sell, can easily be transferred on the stock exchange, and offer a lower return rate than other securities. In general, they fall into two groups: marketable debt securities, and marketable equity securities.

Debt securities are short-term bonds that are issued by a public company and held by another company, usually in place of cash. Marketable debt securities are short term investments that are expected to sell within a year.

Equity securities include common and preferred stock. They are shares of a public company held by another corporation – listed as a holding company in corporate finances. If the stock is going to be sold or traded in the next year, the holding company will list it as a current asset. If the company thinks it will keep the stock for more than a year, it will list it as a non-current asset.