Asset Classes

Cash Equivalent

Definition

What is Cash Equivalent?

A highly liquid, short-term instrument that can usually be converted to cash with little price risk.

Example in practice

A 30-day Treasury bill may be treated as a cash equivalent.

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Anything with economic value that can be owned or controlled.

A group of investments with similar economic characteristics and market behaviour.

Money available immediately for spending, settlement, or investment.

A share that usually carries voting rights and a residual claim on a company's profits and assets.

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