'Management of Marketable Securities Essay\r'

' funds and marketable securities are normally treated as one item in any abbreviation of current assets and holding funds in nimiety of immediate requirement means that the theater is absent out an opportunity income. Excess exchange indeed is normally invested in marketable securities, which serves two purposes that is to say providing liquidity and also exculpateing a return. Investing special cash in marketable securities is normally a part of overall cash management. The task of monetary managers, who become involved with marketable securities either wide of the mark succession or part time consists of ternion issues. Initially the managers must(prenominal) s mickle the detailed characteristics of divers(prenominal) short term investment funds opportunities. Secondly, managers must chthonicstand the markets in which those investment opportunities are taught and sold. Finally managers must develop a strategy for deciding when to debauch and sell marketable secu rities, which securities to hold, and how much to buy or sell in each transaction.\r\nNeed for investment in securities:\r\nMarketable securities result from investment decisions that real are not the main part of the degraded’s business; however, marketable securities endnot be ignored, as they constitute a part of the value of the firm that is entrusted to management. However, they cannot use the short term surplus cash flows for any long term purposes. Surplus cash is thus invested in marketable securities primarily to earn an income, which otherwise remains idle within the firm. Companies which were ruddy with money at one point of time and investing heavily in marketable securities, may issue short term securities to other and scoop out money at another point of time. another(prenominal) prominent reason for holding marketable securities is on account of mismatch between the borrowing and investment programs. Types of marketable securities:\r\nMarketable securities open for investments can be grouped under several ways and they can be classified under three freehanded heads videlicet debt securities, equity securities and contingent claim securities which in turn can be grouped under several heads. Debt securities: There are different kinds of debt securities namely money market instruments and capital market debt instruments.\r\n notes market instruments can be assureed as call money, certificates of deposit, commercial paper, banker acceptances, government securities or securities guaranteed by the government. jacket market debt instruments can be further subdivided into exchequer notes and treasury bonds, Public sector undertaking bonds, incarnate bonds etc.\r\nStudents in order to adhere steady-going grades in their examinations have to listen the lectures delivered by the teachers and professors keenly; they should allot certain number of hours for home prep and in case of need they can get home tuition and by clicking the educa tional websites, they can also learn the topics by help available through finance homework.\r\nReference:\r\nhttp://classof1.com/homework-help/finance-homework-help\r\n'