Marketable Securities

Marketable Securities are a class of investment the company makes on a temporary basis.  There are two basic types of marketable securities:

• Marketable Equity Securities - any instrument that demonstrates ownership of shares in a company such as common stock and preferred stock.
• Marketable Debt Securities - any debt security instrument, the most common being bonds of another company.

Marketable securities are temporary investments one company might make in another company, with the hope of providing higher returns to its investors.  For example, an investment in marketable securities may provide stockholders with a higher return than a cash account at a bank.