Money Market Instruments
- Treasury Bills (T-Bills)
- Commercial Paper
- Certificates of Deposit (CDs)
- Banker's Acceptances
Understanding Marketable Securities
Dive into the world of highly liquid investment instruments that can be converted to cash within a short time frame. Learn about types, benefits, and analysis tools to make informed investment decisions.
What Are Marketable Securities?
Marketable securities are liquid financial instruments that can be quickly converted to cash at a reasonable price. These securities are traded on public exchanges and typically mature within one year or less.
Key Characteristics:
- High liquidity with active secondary markets
- Price transparency through public exchanges
- Minimal transaction costs
- Short-term maturity periods
Types of Marketable Securities
Equity Securities
- Common Stock
- Preferred Stock
- Exchange-Traded Funds (ETFs)
- American Depositary Receipts (ADRs)
Debt Securities
- Government Bonds
- Corporate Bonds
- Municipal Bonds
- Zero-Coupon Bonds