Cash and Cash Equivalents | Definition | Examples

In this video on Cash and Cash Equivalents, here we provide you with its definition, examples and top 3 reasons why firms hold cash and cash equivalents. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐚𝐬𝐡 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐄𝐪𝐮𝐢𝐯𝐚𝐥𝐞𝐧𝐭𝐬? ---------------------------------------------------------------- When a company does not use its cash balance, it can invest its cash in securities that are very low risk liquid (easily sold) so it can generate interest income.It is known as Cash Equivalents. 𝐖𝐡𝐲 𝐝𝐨 𝐟𝐢𝐫𝐦𝐬 𝐡𝐚𝐯𝐞 𝐂𝐚𝐬𝐡 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐄𝐪𝐮𝐢𝐯𝐚𝐥𝐞𝐧𝐭𝐬? ----------------------------------------------------------------------------------- #1 – Overall Operating Strategy #2 – Speculative Acquisition Strategy #3 – No Good Reason To know more about 𝐂𝐚𝐬𝐡 𝐚𝐧𝐝 𝐂𝐚𝐬𝐡 𝐄𝐪𝐮𝐢𝐯𝐚𝐥𝐞𝐧𝐭𝐬, you can go to 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/cash-a... Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe -    / @wallstreetmojo