marketable security

Also known as market securities, any unrestricted financial instrument that can be traded on a public stock or bond exchange. Considered short-term liquid assets, market securities include stocks, bonds, mutual funds, exchange-traded funds (ETFs), Treasury notes, options, futures, trusts, hedge funds, etc. Market securities are categorized into four groups by their liquidity and type of payment: debt, equity, derivative and hybrid. On a corporate balance sheet, marketable securities appear with currents assets, which are assets due in one year or less. While cash and cash equivalents mature in three months or less, marketable securities mature in more than three months.