Cash Management Bill - CMB

  

Categories: Banking, Bonds, Investing

Hey venture capital investors, are you looking to get rich quick on mobile apps? Are you thinking about backing the latest mobile app that teaches you a foreign language while you cook the corresponding cuisine? How about a mobile app that makes mobile apps? Want to throw $1 million behind an app that lets you know where Cool Ranch Doritos wrappers are at all times, even if the wrappers are in trash cans?!

If you’ve got an itching impulse to invest that cool million right away…don’t. Instead, take a minute and buy a cash management bill.

A cash management bill is a short-term security that matures between several days and three months. They're sold by the U.S. Treasury Department to cover short-term cash needs and reserve funding while the government waits for tax revenue to come in.

They’re sold in $1 million increments.

That’s huge for you, fearless VC investor. Because if you own one of these, you’ll have just enough time to rethink the terrible investment that would have been an app designed to tell color blind people what color signs are on the road…but you have to look at your phone to read the color while operating the car. See? There are some bad ideas out there.

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