Check out 'Doctor Strange' in 3D, now in theaters! Thanks to everyone at Stereo D for all their great work.
All marketable debt securities are held at cost on a company's balance sheet as a current asset, until a gain or loss is realized upon the sale of the debt instrument. Marketable debt securities are held as short-term investments and are expected to be sold within one year. If a debt security is expected to be held for longer than one year, it should be classified as a long-term investment on the company's balance sheet.
Definition and Types. Short-term investments are any assets that are anticipated to expire or to be liquidated within the course of one to three years. The goal of this type of asset is to protect capital with low-risk investments. However with low risk, the return on short-term investments is very low.