Bonds are IOUs issued by borrowers to lenders. These instruments come in various forms and are typically used by governments, local authorities, or companies to raise funds, offering fixed or variable interest rates and different terms.
Liquid assets are assets that can be easily converted into cash without significantly affecting their value. They are essential for maintaining the liquidity of individuals and corporations.
Marketable securities are assets on a corporation's balance sheet that can be readily converted into cash, reflecting their liquidity. They include government securities, banker's acceptances, and commercial paper.
A securities loan involves the loaning of securities by one broker to another, typically to facilitate a short sale or, in a broader context, can refer to a loan collateralized by marketable securities.
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