What is Cash Equity?
Cash equity is all about understanding the current status of an investment portfolio. Essentially, the cash equity is the net worth of all cash that could be derived from the investments and securities that are included in the portfolio. Monitoring the cash equity is a great way to make sure that the current mix of investments is working, as well as a good strategy in determining what to keep and what to sell. Calculating the cash equity is a simple process. First, compile a list of all debits that are associated with the financial portfolio. Once this list is complete, make a second list that notes each credit that is current associated with some item in the portfolio. Subtracting the credits from the debits will result in determining the overall cash equity of the current set of investments. Along with using this formula to monitor the cash equity of the portfolio in general, the same approach can be applied to individual assets within the current roster of events. By considering eac
