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
How This Looks in Practice
A 30-day Treasury billA short-term government debt instrument usually issued at a discount and repaid at face value. may be treated as a cash equivalent.
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Related Terms
Asset Classes
Asset
Anything with economic value that can be owned or controlled.
Asset ClassesAsset Class
A group of investments with similar economic characteristics and market behaviour.
Asset ClassesCash
Money available immediately for spending, settlement, or investment.
Equity InvestingCommon Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.