Marketable securities are that securities which can be easily liquidated without any delay. It is the part of company's short term investment. Company should manage it proper way.
Planning function is very important than any other function of management of marketable securities because planning is relating to the choice of marketable securities. In money market, we can find different marketable securities, we have to decide what amount will we invest in what marketable securities?
Because wrong planning may reduce our working capital, so we have to become conscious. Suppose, we invested our money in that marketable securities which were risky. Due to greed, we liquidated just 60% of our original invested money.
That is wrong. We have to see both risk and return. Proper equilibrium of risk and return will be our profitable investment.
If you do not have deep knowledge of money market, it is better for you to invest in Govt. treasury bills. Now, you have to understand just treasury management.
In the management of marketable securities, we can include to make planning, organize and control over securities.
Planning function is very important than any other function of management of marketable securities because planning is relating to the choice of marketable securities. In money market, we can find different marketable securities, we have to decide what amount will we invest in what marketable securities?
Because wrong planning may reduce our working capital, so we have to become conscious. Suppose, we invested our money in that marketable securities which were risky. Due to greed, we liquidated just 60% of our original invested money.
That is wrong. We have to see both risk and return. Proper equilibrium of risk and return will be our profitable investment.
If you do not have deep knowledge of money market, it is better for you to invest in Govt. treasury bills. Now, you have to understand just treasury management.
