Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid.
Cash equivalents, also known as “cash and equivalents,” are one of the three main asset classes in financial investing, along with stocks and bonds. These securities have a low-risk, low-return profile and include U.S. government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper, and other money market instruments—Read more at Investopedia. Chen, James. “Cash Equivalents.” 25 July 2019.