This chapter is also restricted to securities that are marketable. A security is marketable if it is traded on a securities exchange registered with the Securities and Exchange Commission (SEC) or if its price is available through the National Association of Securities Dealers Automated Quotations systems or the National Quotation Bureau. Securities traded on foreign exchanges may also qualify.
Securities that are not readily marketable are unlikely candidates for short-term investments of excess cash. Nonmarketable securities cannot necessarily be liquidated when the investor desires to do so. Investments in nonmarketable securities are usually classified as long-term investments.