Marketable Security

Any equity or debt instrument that it readily salable and can be converted into cash, or exchanged with ease. Stocks, bonds, short-term commercial paper and certificates of deposit are all considered marketable securities because there is a public demand for them and because they can be readily converted into cash.

Whereas shares in private corporations are illiquid, marketable securities can be converted to cash with great ease. Shares of IBM and government bonds are excellent examples of marketable securities. Marketable securities provide investors with the liquidity of cash and the ability to earn a return when the assets are not being used.

Investment dictionary. . 2012.

Look at other dictionaries:

  • marketable security — ➔ security * * * marketable security UK US noun [C] STOCK MARKET ► a share, bond, etc. that can easily be bought and sold: »The company received proceeds from the sale of $12.7 million in marketable securities …   Financial and business terms

  • marketable security — A security (stock, share, bond, etc. ) that can be bought or sold on a stock exchange Compare non marketable securities …   Big dictionary of business and management

  • Non-Marketable Security — Any type of security that is difficult to buy or a sell because it does not trade on a normal market or exchange. These types of securities trade over the counter (OTC) or in a private transaction. Finding a party with which to transact business… …   Investment dictionary

  • marketable — marketable, marketability An attribute that may or may not be associated with a security. A security is considered to be marketable if it is readily salable to buyers in an active secondary market. As defined by the Office of the Comptroller of… …   Financial and business terms

  • Security — Piece of paper that proves ownership of stocks, bonds and other investments. The New York Times Financial Glossary * * * security se‧cu‧ri‧ty [sɪˈkjʊərti ǁ ˈkjʊr ] noun securities PLURALFORM 1. [uncountable] actions to keep someone or something… …   Financial and business terms

  • security — Common or preferred stock; a bond of a corporation, government, or quasi government body. Chicago Board of Trade glossary Piece of paper that proves ownership of stocks, bonds, and other investments. Bloomberg Financial Dictionary Amount that… …   Financial and business terms

  • security — Protection; assurance; indemnification. The term is usually applied to an obligation, pledge, mortgage, deposit, lien, etc., given by a debtor in order to assure the payment or performance of his debt, by furnishing the creditor with a resource… …   Black's law dictionary

  • security — 1) An asset or assets to which a lender can have recourse if the borrower defaults on the loan repayments. In the case of loans by banks and other moneylenders the security is sometimes referred to as collateral 2) A financial asset, including… …   Big dictionary of business and management

  • Marketable — are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly.This is a usual feature in real estate …   Wikipedia

  • marketable obligation — For purposes of defining qualifying employer security, a bond, debenture, note, certificate or other evidence of indebtedness acquired by the plan, if: • The obligation meets certain requirements that ensure it is acquired at a price that is not… …   Law dictionary

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