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    In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?

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    A firm should hold an optimum balance of cash, and invest any temporary excess amount in short-term (marketable) securities. In choosing these securities, the firm must keep in mind safety, maturity and marketability of its investment.
    Four ...

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    Two paragraphs plus a reference given for you.

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