Cash cow

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Minimum maintenance

The lowest required equity level that must be held with a broker in a margin account. See: margin call.

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