Definition

Marketable securities are an investment that is easily traded and easily monetized quickly, These securities are usually traded on the public stock exchange, where quotations are readily available, and they are usually stable and in great demand. For example, if the shares of a telecommunications company in a country are characterized by stability for a period and usually their price does not go down, and the return from them is usually low, then the shares of that telecommunications company are marketable securities.

Use cases, Example & Why it matters

Use cases

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

Example

- Example: Finance teams use **Marketable Security** when planning funding needs and managing cash and risk.

Why it matters

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.

Related terms

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