- target cash balance
- Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash. Bloomberg Financial Dictionary
* * *target cash balance UK US noun [U] FINANCE► the total amount that a company aims to have in its bank accounts at a particular time so that it has enough money available for its needs, but not too much, as this extra amount could be used for other purposes: »
The firm's executive team must determine the appropriate target cash balance.
Financial and business terms. 2012.
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Target cash balance — Optimal amount of cash for a firm to hold, considering the trade off between the opportunity costs of holding too much cash and the trading costs of holding too little cash. The New York Times Financial Glossary * * * target cash balance UK US… … Financial and business terms
Target Cash Balance — The ideal amount of cash that a company wishes to hold in reserve at any given point in time. This figure hopes to strike a balance between the investment opportunity costs of holding too much cash and the balance sheet costs of holding too… … Investment dictionary
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