Marketable securities are unrestricted financial instruments which can be readily sold on a stock exchange or bond exchange. Marketable securities are often classified into two groups: marketable equity securities and marketable debt securities.

Marketable equity securities include shares of common stock and most preferred stock which are traded on a stock exchange and for which there are quoted market prices.

Marketable debt securities include government bonds and corporate bonds which are traded on a bond exchange and for which there are quoted market prices.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years. He is the creator and author of all the content found on AccountingCoach.com. You can read 1,500 testimonials praising his ability to explain accounting in a way that anybody can understand.

Learn more about AccountingCoach Pro