Microsoft (Nasdaq:MSFT), Cisco Systems (Nasdaq:CSCO), Google (Nasdaq:GOOG) Top Holders of Cash

Large tech companies are the leaders in holding cash, led by Microsoft (Nasdaq:MSFT), Cisco Systems(Nasdaq:CSCO) and Google (Nasdaq:GOOG).

The reason tech leads the way is the relatively low capex in relationship to inventory, real estate or equipment, freeing up more capital.

For tech companies listed in Standard & Poor's 500-stock index, they hold a total of $352 billion in short-term investments of cash at this time.

Microsoft is in first place with $43.25 billion short-term investments of cash on hand; next is Cisco with $38.9 billion; and in third place is Google with $33.4 billion.

The ongoing recession has businesses holding cash rather than hiring workers or expanding operations, although some, in general, have been making acquisitions when a good opportunity arises; at least the good ones are waiting.

Excluding financial companies, as of September cash and other liquid assets held by businesses comes to $1.8 trillion in the U.S.

Banks and financial institutions have been doing the same for the same reasons - extreme economic uncertainty, as they are lending very little. That's the major reason there has been little economic growth in the U.S.

The reasoning behind that is simply there are very few good places to put the money to work safely and successfully.

Google closed Thursday at $591.50, up $0.96, or 0.16 percent. Cisco ended the day at $19.70, up $0.35, or 1.81 percent. Microsoft closed at $27.08, down $0.15, or 0.55 percent.