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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use