Cash cycle

Definition:

In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period.

Investing Essentials


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

Term of the Day

Combination strategy

A strategy in which a put and call with different strike prices and the same expiration are either both bought or both sold. Related: Straddle

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