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In Bodie's textbook "Investments":

Money market instruments include short-term, marketable, liquid, low-risk debt securities.

I was wondering about the differences and relations between "marketable" and "tradable." Thanks!

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    Do you have a source for the term "tradable security"? There are different possible definitions for that term. A source might help answer your question. Sep 20 '11 at 14:29
  • No, I don't. What sources are there? By tradable, I mean for things that can be traded.
    – Tim
    Sep 20 '11 at 14:32
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Tradable is a much broader term than marketable. For example, some programmers/developers sell their services online, hence programming is a tradable service. However, it is not a security nor is it marketable since it cannot readily be converted to cash. All marketable securities are, by definition, tradable.

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  • Thanks! I wonder what "readily be converted to cash" means?
    – Tim
    Sep 21 '11 at 14:49
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    @Tim it means that you go to the market and ask for cash in exchange and you get it within a few days, no questions asked. Sep 21 '11 at 14:52

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