Description
I attached the case study, which goes over what I am looking for.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
1
A Report on Recommended Short-term Investments for Company Surplus Cash Outline
Student's Name
Institutional Affiliation
Course Name: Course Code
Professor’s Name
Due Date:
A Report on Recommended Short-term Investments for Company Surplus Cash Outline
•
Introduction
•
Findings
•
Certificates Of Deposit
•
Treasury Bills
•
Treasury Notes
•
Recommendations
•
References
1
A Report on Recommended Short-term Investments for Company Surplus Cash
Student's Name
Institutional Affiliation
Course Name: Course Code
Professor’s Name
Due Date:
2
A Report On Recommended Short-Term Investments For Company Surplus Cash
Introduction
Short-term investment options are those investment opportunities that firms and
organizations do venture into for convenient liquidity preservation purposes, while also earning
some marginal returns on excess cash resources. These investments are short-lived as they
normally have a maturity period of less than a year, or at most two years. Some of this short term
investment that a firm can venture into includes Treasury Notes, Treasury Bills, and Savings
Bonds. This report takes a keener look at the types of short term investment options available,
the references, and the recommendations about them.
The information in this report has been sourced from different areas which include
government sources, short term investment options websites, secondary sources such as books,
and the Non-Governmental Organisation websites.
Findings
Certificates Of Deposit
Certificates of deposit act as savings accounts that hold a fixed amount of money for a
fixed period of time such as six months, one year, or even five years. This in exchange, the
issuing bank normally pays an interest. When someone or an entity cashes in or redeems their
certificates of deposit, they receive the money they originally invested plus the interest that could
have accrued during the investment period (Heller & Schreiber, 2019). Certificates of deposit are
always considered to be one of the safest ways to save. With the certificates of deposit, the
disclosure statement should outline the interest rate on the certificates of deposit and say if the
3
rate is either fixed or variable. It also should state when the bank pays interest on the certificate
of deposit for instance monthly or semi-annually, and whether the interest payment will be made
by check or by an electronic transfer of funds. The maturity date should be clearly stated, as
should any penalties for the early withdrawal of the money in the account. The risk with a
certificate of deposit is the risk that inflation will...