Final answer:
Yes, companies invest excess cash in marketable securities for short-term gains while retaining liquidity.
Step-by-step explanation:
It is true that companies may purchase marketable securities as a way to temporarily invest excess cash. This includes a range of financial instruments such as stocks, bonds, or money market funds that can be readily converted into cash. These short-term investments are typically made in money markets for less than a year, or in capital markets for long-term investments in financial assets like corporate bonds. Companies choose to invest in marketable securities to optimize their cash on hand and potentially earn a return on investments while still maintaining liquidity.