Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

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Marketable securities are typically defined as low-risk securities that are easily sold in the secondary market with short-term maturities. This is because firms typically invest their excess cash in safe and liquid assets to preserve the value of their funds.

Most Firms Invest Their Excess Cash in Marketable Securities Which