Investor Glossary-cash equivalentsInvestor Glossary-cash equivalentsInvestor Glossary-cash equivalentsInvestor Glossary-cash equivalentsInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cash Equivalents

The HTML to link to this page
 

Cash equivalents are investments that are so liquid and so safe that they are nearly the same as cash. Statement of Financial Accounting Standards 95 provides definitions and examples of cash equivalents. Cash equivalents are short-term, highly liquid investments that (1) are readily convertible into cash, and (2) are so near their maturity date (usually three months or less from time of purchase) that they contain negligible interest-rate risk. Cash equivalents include both treasury bills and money market funds. Commercial paper, which are securities issued by large corporations as an alternative to acquiring short-term loans, are also considered cash equivalents. Because cash equivalents are so near to cash, they are usually lumped together with cash at the very top of the left side of the balance sheet. In other words, cash equivalents represent the most current of current assets.



Rate this cash equivalents definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use