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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.
The high liquidity of marketable securities makes them very popular among individual and institutional investors. These types of investments can be debt securities or equity securities. Though there are numerous types of marketable securities, the most common types of equity and debt securities are stocks and bonds. Stock represents an equity investment because shareholders retain partial ownership in the company in which they have invested.