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Equitization

• Convert into equity. When mutual fund managers invest their cash in Treasury Bill and go long in S&P500 futures contract, they in effect have the liquidity of the cash yet the returns to the stock market. This is called equitization.

 
 Embedded terms in definition
 Cash
Contract
Equity
Fund manager
Futures contract
Futures
Go
Liquidity
Long
Market
Mutual fund
Stock market
Stock
Treasury bill

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