If read a balance sheet, you will find an item under the current asset group named “Short-term Investments”. Short-term Investments and Marketable Securities are generic terms used to describe a variety of investments a company may hold.
An investment generally is considered marketable if it can be purchased or sold in the public financial markets, but a company may hold other types of investments too.
The general category may include investments in stocks and bonds of other companies, U.S. Treasury bills and bonds, mutual funds, money market funds, certificates of deposit, and commercial paper. Many of these types of investments can be classified as either short-term or long-term, some may be classified as cash equivalents and combined with cash on the balance sheet, and others may be underlying investments held in a fund to repay long-term debt or pension obligations.
