Which of the following does NOT typically characterize marketable securities?

Marketable securities are financial instruments that can be easily bought or sold in the market. They typically have characteristics that make them attractive for investors looking for a short-term investment solution. One key aspect of marketable securities is their high liquidity, which allows investors to convert them into cash quickly without significantly affecting their market price.

Additionally, marketable securities are usually associated with low risk, as they include government bonds and shares of well-established companies, making them more stable than other types of investments. Furthermore, their easy convertibility to cash enables investors to access their funds promptly when needed.

However, the notion of a long-term holding period does not align with the characteristics of marketable securities. These instruments are generally intended for short-term investment horizons. Investors typically hold them for a period that does not exceed one year, with the objective of taking advantage of their liquidity and low risk. This focus on short-term gains distinguishes them from other assets, such as stocks or bonds formed for long-term gains.

Thus, recognizing that long-term holding is not a typical characteristic of marketable securities helps clarify why that option stands out in this context.