Cash and marketable securities management, Finance Basics

Assignment Help:

Cash and Marketable Securities Management

The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketable securities are the firm's most liquid assets, they offer the firm along with the ability to meet its maturing obligations.

Cash refers to cash in hand and cash on demand deposits or current accounts. Therefore it excludes cash in time deposits that is not instantly available to meet maturing obligations. Marketable securities are short-term investments made with the firm to acquire a return on temporary idle funds. When a firm realizes such as it has accumulated more cash than required, it often puts the excess cash into an interest-earning instrument. The firm can invest the excess cash in type of or a combination of the given marketable securities.

  • Government treasury bills
  • Agency securities like local parastatals securities or government's securities
  • Banker's acceptances that are securities, accepted through banks
  • Commercial paper or unsecured promissory notice
  • Repurchase agreements
  • Negotiable certificates of deposits
  • Eurocurrencies and so on.

Related Discussions:- Cash and marketable securities management

Determine the npv of a company, Example of NPV Value A company is fac...

Example of NPV Value A company is faced along with the following five (5) investment opportunities as:   Cost NPV P.I = Total P.v

IS LM, After carefully reading all the available information, prepare a two...

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

Mutual fund, investment procedure of mutual fund

investment procedure of mutual fund

Irr or internal rate of return, IRR or Internal Rate of Return This me...

IRR or Internal Rate of Return This method is a discounted cash flow technique that uses the principle of NPV.  It is described as the rate such equates the present value of c

Debtors or accounts receiver turnover, Debtors or Accounts Receiver Turnove...

Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover  = Annual credit sales/Average debtor The ratio signify the number of ti

Assets, thew amount of money investedin a retirement fund is an example of

thew amount of money investedin a retirement fund is an example of

Example of npv method, Example of NPV Method Resolution limited inte...

Example of NPV Method Resolution limited intends to purchase a machine worth Shs.1, 500,000 that will have a residue value Shs.200,000 after 5 years helpful life. The saving

Advantages of bonus matter, Advantages of Bonus Matter a) Tax advanta...

Advantages of Bonus Matter a) Tax advantages         Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh

Solution to the agency conflict, Solution to the Agency Conflict The g...

Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover

Nash equilibrium, Suppose that two players are playing the following game. ...

Suppose that two players are playing the following game.  Player A can choose either Top or Bottom, and Player B can choose either Left or Right.  The payoffs are given in the foll

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd