What Is Cash Collateral? Cash collateral is cash and equivalents collected and held for the benefit of creditors during Chapter 11 bankruptcy proceedings. Cash and cash equivalents include negotiable instruments, documents of title, securities, and deposit accounts. Unless a court orders otherwise, cash collateral is separated from other assets for the purposes of paying creditors.
What Is a Cash Commodity? A cash commodity is a tangible product to be delivered in exchange for payment and is seen most frequently with futures options. A contract for a cash commodity will specify the exact amount of the commodity which is expected to be delivered, along with the delivery date, and the price.
What Is Cash Concentration and Disbursement (CCD)? Cash concentration and disbursement is a type of electronic funds transfer typically used to transfer funds among commercial business accounts. Funds can be consolidated from various locations and so-called concentrated into a single collection account. Funds can also be quickly and easily disbursed to intra-accounts, vendors, or accounts payable
What Is a Cash Contract? A cash contract is a financial agreement in which one party agrees to purchase a specified quantity of a commodity on a predetermined date. Unlike futures contracts in which the purchaser often closes out their contract for cash prior to the delivery date, the buyer in a cash contract always
What Is a Cash Discount? Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. In a cash discount, the seller will usually reduce the amount that the buyer owes by either a small percentage or a set dollar amount. Key
What Is a Cash Dividend? A cash dividend is the distribution of funds or money paid to stockholders generally as part of the corporation’s current earnings or accumulated profits. Cash dividends are paid directly in money, as opposed to being paid as a stock dividend or other form of value. Most brokers offer a choice to
What Does Cash Earnings Per Share Meaning? Cash earnings per share (cash EPS), or more commonly called operating cash flow, is a financial performance measure comparing cash flow to the number of shares outstanding. Cash EPS differs from the more popular net profit measure, earnings per share (EPS), which compares net income on a per share
What Is Cash Equity? Cash equity most often refers to common stock and the (spot) cash equity market that involves the large institutions that trade blocks of stock with firm capital and on behalf of customers. These firms are themselves referred to as cash equity players. Cash equity is also a real estate term that
What Are Cash Equivalents? Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid. Cash equivalents, also known as “cash and equivalents,” are one of the three main asset classes in financial investing, along with stocks and bonds. These securities have a low-risk, low-return profile.
What Is Cash Flow? The term cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a company. Cash received represents inflows, while money spent represents outflows. A company’s ability to create value for shareholders is fundamentally determined by its ability to generate positive cash flows or
