Primary Functions of Treasury Management
Treasury management comprises three primary functions (1) cash management, (2) limited term investment management, and (3) debt management.
A method for organizing the investments in your portfolio between stocks, bonds, and cash by percentages.
The practice of allocating money between different investments within each asset allocation category.
The degree of rapid and unpredictable change.
Common stock traded in the securities market.
Passive Stock Investments
A marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
Active Stock Investments
Requires use of an investment broker to make stock selections and manage investments.
Asset Allocation Timeframes
Cash and short-term investments held in less than one year
Intermediate-term investments held between one to seven years
Long-term investments held over seven years