Financial Quotient

What are marketable securities?

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Marketable securities refer to financial instruments that are like cash held by firms on their balance sheets. They are usually very liquid and accompanied by low risk.

Commonly cited short-term instruments include Treasury bills, certificates of deposits, commercial papers, repurchase agreements, bankers' acceptances or money market mutual funds. These are also called "money market" instruments.

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A version of this article appeared in the print edition of The Sunday Times on December 01, 2019, with the headline What are marketable securities?. Subscribe