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SURPLUS CASH MEANS THAT AMOUNT WHICH IS LEFT WITH THE COMPANY IDEAL EITHER TO MEET FUTURE EXIGENCIES

OR VARIABLE REQUIREMENT THIS AMOUNT IS CALLED SURPLUS CASH . THESE CASH SURPLUS CAN BE INVESTED IN SHORT TERM MONEY MARKETS ,WHICH IS ALSO CALLED NEAR MONEY THIS INVESTMENT DECISION IS TAKE N BY THE FINANCE MANAGER.

AS THIS INVESTMENT IS DONE FOR A SHORT PERIOD OF TIME THE COMPANY NEEDS TO LOOK AT THE BELOW MENTIONED FEATURES OF SECURITIES: 1. SAFETY 2. MATURITY 3. MARKETABILITY

1. 2. 3. 4. 5.

TREASURY BILLS COMMERCAIL PAPERS CERTIFICATE OF DEPOSITS BANK DEPOSITS INTER CORPORATE DEPOSITS