What type of assets are included in marketable securities?

Marketable securities refer to financial instruments that are easily tradable in the financial markets. They typically include cash equivalents and short-term investments that can be quickly converted to cash, usually within a year. This might encompass instruments like stocks, bonds, and Treasury bills that are readily available for sale in active markets.

The essence of marketable securities lies in their liquidity, meaning they can be consumed readily without substantially affecting their price. Cash equivalents are highly liquid investments with short maturities, while short-term investments generally involve financial assets that are not held for long periods and can quickly change hands.

In contrast, long-term investments typically do not fall under marketable securities because they are intended to be held for extended periods and may not easily convert to cash without potential loss of value. Fixed assets and intangible assets, such as property, plant, equipment, or intellectual property, are not included because they are not easily convertible to cash and generally lack a market that facilitates rapid trading. Therefore, cash equivalents and short-term investments distinctly define the category of marketable securities, making this choice the most appropriate answer.