What Is a Carve-Out? A carve-out is the partial divestiture of a business unit in which a parent company sells a minority interest of a subsidiary to outside investors. A company undertaking a carve-out is not selling a business unit outright but, instead, is selling an equity stake in that business or relinquishing control of
What Is the Cost Accounting Standards Board (CASB)? The Cost Accounting Standards Board (CASB) is a U.S. federal government body that mandates consistency and uniformity in cost accounting activities for government grants and contracts. Established by Congress in 1970, the CASB was dissolved in 1980 but was permanently re-established in 1988. The CASB is a
What Is a Cascade Tax? A cascade tax or cascading tax refers to a system that imposes sales taxes on products at each successive stage in the supply chain from raw material to consumer purchase. Each buyer in the supply chain pays a price based on its cost, including the previous tax or taxes that
What Is Cash? Cash is legal tender—currency or coins—that can be used to exchange goods, debt, or services. Sometimes it also includes the value of assets that can be easily converted into cash immediately, as reported by a company. Understanding Cash Cash is also known as money, in physical form. Cash, in a corporate setting
What Is a Cash Account? A cash account with a brokerage firm requires that any securities transactions be payable in full from funds in the account at the time of the settlement. Short selling and buying on margin are thus prohibited in this type of account. The Federal Reserve’s Regulation T governs cash accounts and
What Is Cash Accounting? Cash accounting is an accounting method where payment receipts are recorded during the period in which they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively. Cash accounting is also
What Is a Cash-and-Carry Trade? A cash-and-carry trade is an arbitrage strategy that exploits the mispricing between the underlying asset and its corresponding derivative. The key to profiting from this strategy is the eventual correction in that mispricing. A cash-and-carry trade should not be confused with a carry trade in the context of forex trading;
What Are Cash and Cash Equivalents (CCE)? Cash and cash equivalents refers to the line item on the balance sheet that reports the value of a company’s assets that are cash or can be converted into cash immediately. Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than
What Is Cash-and-Stock Dividend? Cash-and-stock dividend, as its name implies, is when a corporation distributes earnings to its shareholders in both cash and stock as part of the same dividend. The cash portion of the dividend is expressed in cents or dollars per share owned, and the stock portion is expressed as a percentage of the
What Is Cash Available for Distribution (CAD)? Cash available for distribution (CAD) refers to a real estate investment trust’s (REIT) cash-on-hand that is available to be distributed as shareholder dividends. The CAD value is calculated by taking the REIT’s funds from operations (FFO) and subtracting its recurring capital expenditures (CAPEX). CAD is the most liquid
