Cash Equivalents


DEFINITION of 'Cash Equivalents'

Investment securities that are short-term, have high credit quality and are highly liquid.

Also referred to as "cash and equivalents".


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BREAKING DOWN 'Cash Equivalents'

Cash equivalents are one of the three main asset classes, along with stocks and bonds. These securities have a low-risk, low-return profile. Cash equivalents include U.S. government Treasury bills, bank certificates of deposit, bankers' acceptances, corporate commercial paper and other money market instruments.

  1. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
  2. Liquidity

    The degree to which an asset or security can be quickly bought ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave ...
  4. Core Liquidity

    Cash and other financial assets that banks possess that can easily ...
  5. Cash Position

    The amount of cash that a company, investment fund or bank has ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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