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What is cash equities?

Posted: November 14th, 2008, 12:51 pm
by wenge
I googled the web and did not find any understandable definition. Thanks,

What is cash equities?

Posted: November 14th, 2008, 1:28 pm
by daveangel
common stock - it means that is not a derivative

What is cash equities?

Posted: November 14th, 2008, 1:51 pm
by wenge
Thanks, dave.I was confused with explanation on the web http://www.wisegeek.com/what-is-cash-equity.htmCould you please explain a bit what it is talking about?

What is cash equities?

Posted: November 14th, 2008, 2:04 pm
by daveangel
seems that is referring to the net asset valueof a portfolio ? could be wrong also, perhaps I should have said "what is the context "?

What is cash equities?

Posted: November 14th, 2008, 2:17 pm
by phil451
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'.

What is cash equities?

Posted: November 14th, 2008, 2:22 pm
by phil451
My Grammar went a bit haywire in that last post."Now, moving further into the realms of sanity..." should have read "Now, moving further into the realms of insanity..."and"This is different from an equity derivative where there would only the P&L...." should have read "This is different from an equity derivative where only the P&L would have changed hands plus a small margin"

What is cash equities?

Posted: November 14th, 2008, 2:55 pm
by ppauper
QuoteOriginally posted by: daveangelseems that is referring to the net asset value of a portfolio ? there's a difference between "cash equity" and "cash equities" !

What is cash equities?

Posted: November 14th, 2008, 2:57 pm
by wenge
I am trying to understand the products that are trading on LSEhttp://www.lchclearnet.com/cash_equities/lse/products.asp

What is cash equities?

Posted: November 14th, 2008, 3:03 pm
by daveangel
these are just stocks