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Cash and cash equivalents ( CCE) are the most liquid current assets found on a business's balance sheet. Cash equivalents are short-term commitments "with temporarily idle cash and easily convertible into a known cash amount". [1] An investment normally counts as a cash equivalent when it has a short maturity period of 90 days or less, and can ...
And unlike individual stocks, mutual funds only trade once per day, after the markets close. Short-Term Government Bonds Treasury bonds are also a form of cash-equivalent liquid asset.
Hedge fund. A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to improve investment performance and insulate returns from market risk. Among these portfolio techniques are short selling and the use of leverage and derivative instruments. [ 1]
Financial asset. A financial asset is a non-physical asset whose value is derived from a contractual claim, such as bank deposits, bonds, and participations in companies' share capital. Financial assets are usually more liquid than tangible assets, such as commodities or real estate. [1] [2] [3]
Launches of liquid alts funds tripled from 2009 to 2013. Major drivers for the growth in liquid alternative funds include: "The 2008 crisis has fundamentally changed investors’ priorities from a main emphasis on investment returns and alpha generation to an emphasis on diversification and downside protection (or principal preservation), especially in the case of a steep market downdraft"
Market liquidity. In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold.
Liquid capital or fluid capital is the part of a firm's assets that it holds as money. [1] It includes cash balances, bank deposits, and money market investments.
t. e. The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the security by the issuer to a purchaser, who pays proceeds to the issuer, is the primary market. [ 1]