Marketable Securities
Marketable securities are
short terms investments in securities that can be readily converted into cash.
Short term investment/securities are highly liquid and can be sold within one
year of time period in the secondary market. Government bonds, common stocks
and certificate of deposit are some of the common marketable securities.
Importance of marketable securities
Business organizations
invest in marketable securities to get certain opportunities of keeping current
assets and making some ready profit. As they are traded in the secondary
market, firms can convert it easily when it is needed. So, this is like a current asset but again a form of investments from where the firm gets certain profit. This is important as it is presented in the
asset section of balance sheet.
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