Cash Neutral

Being cash neutral means you don’t have to add any more cash to your investment portfolio in order to reposition the securities within it. This can be done by selling a security, assuming you have one, and then using the proceeds to buy another security. Or selling short, then using those proceeds to buy another security.

It’s kinda like buying a new car. But, instead of purchasing it with your hard-earned cashola, you sell your old jalopy first, then use the proceeds to hopefully purchase your new lowride. But we’re not sure what kind of vehicle you can buy with $500. Perhaps a new jalopy? Better yet, a moped with a banana seat and white-walled wheels.