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Learning to Invest / Reading Financial Statements


Subject:  Re: RMEssentials Data for Financial Stocks Date:  5/22/2000  8:24 PM
Author:  makfan Number:  1093 of 3994

Trading securities are generally not considered a cash equivalent. Short-term investments would be something like a 3-month bond. Anything that matures in 90 days or less is at little market value risk and is considered a cash equivalent.

Trading securities would generally be stocks and bonds with longer maturities. In essence they are a cash parking place, but since the market value fluctuates, they aren't considered a cash equivalent. They are similar to marketable securities (also known as available-for-sale investments), except that the expected holding period is short-term rather than long-term.

I hope my answer isn't too confusing.

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