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List the Three Components of a Valid Authorization

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Essay

List the three components of a valid authorization.


Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which provide voting rights and potential dividends.

Short-Term Investment

Financial assets that are expected to be converted into cash or sold within a year.

Monetary Assets

Monetary assets are financial assets that are cash or can be quickly converted into a known amount of cash with minimal risk of changes in value.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

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