Marketable Equity Securities

Marketable Equity Securities are equity or common stock investments held by a company in another large corporation.  Since there is an active market for such marketable equity securities they are considered liquid investments - nearly as liquid as cash.  Until the marketable equity securities are sold, they are usually valued at the lower of cost or market.

If the investment in equity securities is for purposes of controlling that company, those securities are not considered marketable equity securities; rather they are considered long term investments. 

Marketable equity securities can be found in the current assets section of a company's balance sheet.