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| This dictionary contains: 24549 financial terms |
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Cash settlement
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Cash settlement1) Deals on an exchange where investors are obliged to settle immediately rather than on account. 2) An expression used in futures and options trading which applies when physical delivery is impractical and contracts are settled by attaching a monetary value.
RELATED TERMS--------------------------------------
Exchange
A marketplace in which shares, options and futures on stocks, bonds, commodities, and indexes are traded.
Settle
To pay a debt or bill or account.
Account
1) In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented. 2) In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. 3) In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent.
Futures
Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Trading
Buying and selling securities.
Delivery
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
Monetary
Relating to money or currency.
Value
The worth or desirability of something expressed as an amount of money.
SIMILAR TERMS--------------------------------------
Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.
Cash & carry
Applies to derivative products. Combination of a long position in a stock/index/commodity and short position in the underlying futures, which entails a cost of carry on the long position.
Cash account
A brokerage account that settles transactions on a cash-rather than credit-basis.
Cash and equivalents
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as bonds and Banker's Acceptances.
Cash asset ratio
Cash and marketable securities divided by current liabilities.
Cash available for debt service
Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm.
Cash basis
Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out.
Cash budget
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances.
Cash commodity
The actual physical commodity, as distinguished from a futures contract.
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable.
CASH CONVERTERS International
CASH CONVERTERS International is a large Australian company in the field of retailing. Their Australian Stock Exchange (ASX) code is CCV.
Cash cow
A company that pays out most of its earnings per share to stockholders as dividends or a company or division of a company that generates a steady and significant amount of free cash flow.
Cash cycle
In general, the time between cash disbursement and cash collection. In networking capital management, it can be thought of as the operating cycle less the accounts payable payment period.
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience.
Cash delivery
The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset.
Cash discount
An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days.
Cash dividend
A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.
Cash earnings
A firm's cash revenues less cash expenses, which excludes the costs of depreciation.
Cash equivalent items
Examples include Treasury bills and Banker's Acceptances.
Cash equivalent security
Is a term which has several meanings. It often refers to high grade instruments which are very liquid and have very little time to maturity.
Cash extraction
A defensive strategy using warrants to replace the exposure to assets at a lower price, thereby releasing cash.
Cash flow
The amount of money which flows in and out of a business, the difference between the two being the important number.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow break-even point
The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations, calculated as the sum of net income plus noncash expenses that are deducted in calculating net income.
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization that calls for the manager to match the maturity of each element in the liability stream, working backward from the last liability to assure all required cash flows.
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding.
Cash flow time line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash fund
A collective investment scheme which relies on currency trading for its profits.
Cash in advance
A payment term meaning the buyer pays the seller before shipment is effected.
Cash in lieu (CIL)
In a typical exchange offer, "old" shares of the target company are exchanged for "new shares".
Cash investments
Short-term debt instruments—such as commercial paper, banker's acceptances, and Treasury bills, that mature in less than one year.
Cash management
Refers to the efficient management of cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income, such as the use of lock boxes for payments.
Cash management bill
Very short-maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days.
Cash market
The market in the underlying instrument (for example, shares, indices, commodities, etc.) on which a futures or options contract is based.
Cash money
Money in coins and banknotes, as opposed to credit cards, cheques or other documentary money.
Cash offer
Often used in risk arbitrage. Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target.
Cash on cash return
A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment.
Cash on delivery (COD)
In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash.
Cash plus convertible
Convertible bond that requires cash payment upon conversion.
Cash position
The percentage of a mutual fund's assets invested in short-term reserves, such as US Treasury bills or other money market instruments.
Cash price
Applies to derivative products.
Cash ratio
The proportion of a firm's assets held as cash.
Cash sale
Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure.
Cash settlement contracts
Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.
Cash surrender value
The value of funds returnable to the insured from the insurer upon the surrender of a cash value life insurance policy.
Cash transaction
A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price).
Cash value life insurance
A life insurance policy which pays a benefit on the death of the insured but which also provides a savings element where benefits are payable before death.
Cashback
A sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees.
Cashbook
An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.
Cashed-Based
Referring to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered.
Cashier's check
A check drawn directly on a customer's account, making the bank the primary obligor, and assuring firm that the amount will be paid.
Cashout
Occurs when a firm runs out of cash and cannot readily sell marketable securities.
Cashout laws
These laws enable shareholders to sell their stakes to a "controlling" shareholder at a price based on the highest price of recently acquired shares.
PREVIOUS AND NEXT TERMS--------------------------------------
Cash plus convertible
Convertible bond that requires cash payment upon conversion.
Cash position
The percentage of a mutual fund's assets invested in short-term reserves, such as US Treasury bills or other money market instruments.
Cash price
Applies to derivative products.
Cash ratio
The proportion of a firm's assets held as cash.
Cash sale
Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure.
Cash settlement
Cash settlement contracts
Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.
Cash surrender value
The value of funds returnable to the insured from the insurer upon the surrender of a cash value life insurance policy.
Cash transaction
A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price).
Cash value life insurance
A life insurance policy which pays a benefit on the death of the insured but which also provides a savings element where benefits are payable before death.
Cashback
A sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees.
RELATED TERMS--------------------------------------
Exchange
A marketplace in which shares, options and futures on stocks, bonds, commodities, and indexes are traded.
Settle
To pay a debt or bill or account.
Account
1) In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented. 2) In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. 3) In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent.
Futures
Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Trading
Buying and selling securities.
Delivery
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
Monetary
Relating to money or currency.
Value
The worth or desirability of something expressed as an amount of money.
SIMILAR TERMS--------------------------------------
Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.
Cash & carry
Applies to derivative products. Combination of a long position in a stock/index/commodity and short position in the underlying futures, which entails a cost of carry on the long position.
Cash account
A brokerage account that settles transactions on a cash-rather than credit-basis.
Cash and equivalents
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as bonds and Banker's Acceptances.
Cash asset ratio
Cash and marketable securities divided by current liabilities.
Cash available for debt service
Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm.
Cash basis
Refers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out.
Cash budget
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances.
Cash commodity
The actual physical commodity, as distinguished from a futures contract.
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable.
CASH CONVERTERS International
CASH CONVERTERS International is a large Australian company in the field of retailing. Their Australian Stock Exchange (ASX) code is CCV.
Cash cow
A company that pays out most of its earnings per share to stockholders as dividends or a company or division of a company that generates a steady and significant amount of free cash flow.
Cash cycle
In general, the time between cash disbursement and cash collection. In networking capital management, it can be thought of as the operating cycle less the accounts payable payment period.
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience.
Cash delivery
The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset.
Cash discount
An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days.
Cash dividend
A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.
Cash earnings
A firm's cash revenues less cash expenses, which excludes the costs of depreciation.
Cash equivalent items
Examples include Treasury bills and Banker's Acceptances.
Cash equivalent security
Is a term which has several meanings. It often refers to high grade instruments which are very liquid and have very little time to maturity.
Cash extraction
A defensive strategy using warrants to replace the exposure to assets at a lower price, thereby releasing cash.
Cash flow
The amount of money which flows in and out of a business, the difference between the two being the important number.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow break-even point
The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations, calculated as the sum of net income plus noncash expenses that are deducted in calculating net income.
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization that calls for the manager to match the maturity of each element in the liability stream, working backward from the last liability to assure all required cash flows.
Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding.
Cash flow time line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash fund
A collective investment scheme which relies on currency trading for its profits.
Cash in advance
A payment term meaning the buyer pays the seller before shipment is effected.
Cash in lieu (CIL)
In a typical exchange offer, "old" shares of the target company are exchanged for "new shares".
Cash investments
Short-term debt instruments—such as commercial paper, banker's acceptances, and Treasury bills, that mature in less than one year.
Cash management
Refers to the efficient management of cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income, such as the use of lock boxes for payments.
Cash management bill
Very short-maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days.
Cash market
The market in the underlying instrument (for example, shares, indices, commodities, etc.) on which a futures or options contract is based.
Cash money
Money in coins and banknotes, as opposed to credit cards, cheques or other documentary money.
Cash offer
Often used in risk arbitrage. Proposal, either hostile or friendly, to acquire a target company through the payment of cash for the stock of the target.
Cash on cash return
A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment.
Cash on delivery (COD)
In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash.
Cash plus convertible
Convertible bond that requires cash payment upon conversion.
Cash position
The percentage of a mutual fund's assets invested in short-term reserves, such as US Treasury bills or other money market instruments.
Cash price
Applies to derivative products.
Cash ratio
The proportion of a firm's assets held as cash.
Cash sale
Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure.
Cash settlement contracts
Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.
Cash surrender value
The value of funds returnable to the insured from the insurer upon the surrender of a cash value life insurance policy.
Cash transaction
A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price).
Cash value life insurance
A life insurance policy which pays a benefit on the death of the insured but which also provides a savings element where benefits are payable before death.
Cashback
A sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees.
Cashbook
An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.
Cashed-Based
Referring to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered.
Cashier's check
A check drawn directly on a customer's account, making the bank the primary obligor, and assuring firm that the amount will be paid.
Cashout
Occurs when a firm runs out of cash and cannot readily sell marketable securities.
Cashout laws
These laws enable shareholders to sell their stakes to a "controlling" shareholder at a price based on the highest price of recently acquired shares.
PREVIOUS AND NEXT TERMS--------------------------------------
Cash plus convertible
Convertible bond that requires cash payment upon conversion.
Cash position
The percentage of a mutual fund's assets invested in short-term reserves, such as US Treasury bills or other money market instruments.
Cash price
Applies to derivative products.
Cash ratio
The proportion of a firm's assets held as cash.
Cash sale
Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure.
Cash settlement
Cash settlement contracts
Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.
Cash surrender value
The value of funds returnable to the insured from the insurer upon the surrender of a cash value life insurance policy.
Cash transaction
A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price).
Cash value life insurance
A life insurance policy which pays a benefit on the death of the insured but which also provides a savings element where benefits are payable before death.
Cashback
A sales incentive, commonly used on mortgages, which gives customers a cash sum as soon as the deal is signed. Typically linked to heavy redemption fees.
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This dictionary contains 24549 terms.
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