Yes..... there's a bit of confusion here about 'the Cash Equity' and 'A Cash Equity'.A Cash Equity is a simple stock/share (common or preferred). (ie) RBS is currently quoted in London at 51.631 penceIf i was insane enough to want to buy stock in the bank. Lets say a thousand shares i would pay 51.631 * 1000 = 51631 pence = £516.31Now, moving further into the realms of sanity, lets assume the stock price increases by 10 pence to 61.31, i could realise a profit by selling the 1,000 shares(ie) 61.631 * 1,000 = 61631 pence = £616.31. Hence realising a profit of £516.31 - £516.31 = £100. Conversely, if the stock price had declined 10 pence i would have lost £100This is different from an equity derivative where there would only the P&L would have changed hands plus a margin. The point is that with 'A Cash Equity' the entire principal has to exchange hands as well. Cash Equities are a subset of Cash Securities which also includes T-Bonds and T-Bills.Wise Geek is talking about the amount of actual cash that could realised by liquidating a portfolio. It is a similar concept to the cash equity in a company.I think that your question relates to 'A Cash Equity' rather than 'The Cash Equity'.