What Are Cash Flow Plans? Cash flow plans, in insurance, are plans that allow policyholders to use their own cash flow to finance their insurance premiums. Cash flow plans can also refer to an insurance company’s assessment of a company’s cash flow, income streams, and expenses, along with a plan to coordinate the payment of
What Is a Cash Flow Statement? A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period. A company’s financial statements offer investors
What Is the Cash Flow-to-Debt Ratio? The cash flow-to-debt ratio is the ratio of a company’s cash flow from operations to its total debt. This ratio is a type of coverage ratio and can be used to determine how long it would take a company to repay its debt if it devoted all of its cash
What is Cash for Bond Lending? Cash for bond lending is a lending structure used in the Federal Reserve’s Term Auction Facility (TAF), whereby borrowers receive a cash loan, by using all or a portion of their own portfolio of bonds as collateral. Key Takeaways Cash for bond lending allows borrowers to receive a cash
What Is a Cashier’s Check? A cashier’s check is a secure way to make large payments. The check itself is written by a financial institution such as a bank or credit union against its own funds. When you request a cashier’s check from your bank, money is moved out of your account and into the
What Is a Cash Investment? A cash investment is a short-term obligation, usually fewer than 90 days, that provides a return in the form of interest payments. Cash investments generally offer a low return compared to other investments. They may also have very low levels of risk, in addition to being insured by the Federal
What Is Cash Is King? “Cash is king” is a slang term reflecting the belief that money (cash) is more valuable than any other form of investment tools, such as stocks or bonds. This phrase is often used when prices in the securities market are high, and investors decide to save their cash for when
What Is a Cashless Conversion? A cashless conversion is the direct conversion of ownership, from one type of security to another, without any initial cash outlay by the holder. For instance, the conversion of a convertible bond from debt to equity in the form of common stock. Contracts for convertible securities define all the terms
What Is a Cashless Exercise? A cashless exercise, also known as a “same-day sale,” is a transaction in which an employee exercises their stock options by using a short-term loan provided by a brokerage firm. The proceeds from exercising the stock options are then used to repay the loan. In this respect, a cashless exercise
What Is Cash Management? Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company’s financial stability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth
