Cash Equivalents

Cash Equivalents - This is any such investment turned into currency without losing in the conversion price because of additional fees. Any fixed-income that matures in less than one year considered a cash equivalent. This includes Treasury bills, guaranteed investment contracts and the like. Conventional wisdom states you have about ten percent of your portfolio in cash or cash equivalents for a number of reasons. The cash equivalent available to the individual portfolio quickly accommodates for many reasons. Cash equivalents can cushion an otherwise insistent stock portfolio. This investing is strictly in the short-term debt maturing, at most, an average of ninety days.