Target cash balance

Definition:

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.

Investing Essentials


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

Term of the Day

Central Counterparty Clearing House

An organization in European countries that helps facilitate trading done in European derivatives and equities market.

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