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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use