No. of Recommendations: 0
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.

Mike
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.