Glossary · Reading the business
Marketable Security
In short
These are liquid assets like stocks, bonds, or mutual funds that can be quickly converted to cash. For a business, they represent a readily available source of funds.
What it means in a deal
In a business acquisition, marketable securities held by the target business are considered during valuation and collateral analysis. They can sometimes be used to meet working capital needs or as part of your equity injection if you have them personally. Understand their true liquidity and market risk.
Related terms
Common questions about Marketable Security
- Can personal marketable securities (stocks/bonds) be used as collateral if business assets are insufficient?
- Can pledged marketable securities, like stocks, serve as additional collateral for an SBA 7(a) loan?
- What criteria justify a lender waiving a lien on readily marketable personal assets from a guarantor?
- When can a lender waive the requirement for a lien on readily marketable personal assets of a guarantor?
- How does the SBA require lenders to perfect security interests on accounts receivable and inventory?
- How does a lender perfect a security interest in intellectual property for a 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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