Cash deficiency agreement

Similar financial terms

Petty Cash
Minor amount of money held by a person or business to pay for small miscellaneous and infrequent items of expenditure.

Cash flow
Increased and decreases in working capital affected by fluctuating income and/or expenses.

Cash flow statement
Alternative name for the statement of cash flow.

Wanted for cash
A statement displayed on market tickers signaling that a bidder will pay cash for same day settlement of a block of a specified security.

Target cash balance
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.

Symmetric cash matching
An extension of cash flow matching that allows for the short-term borrowing of funds to satisfy a liability prior to the liability due date, resulting in a reduction in the cost of funding liabilities.

Statement-of-cash-flows method
A method of cash budgeting that is organized along the lines of the cash flow statement.

Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a specified period.

Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of the mortgage not including possible prepayments.

Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.

Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.

Noncash charge
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.

Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.

Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.

Ledger cash
A firm's cash balance as reported in its financial statements. Also called book cash.

Book cash
A firm's cash balance as reported in its financial statements. Also called ledger cash.

Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and Banker's Acceptances. Cash equivalents on balance sheets include securities (e.g., notes) that mature within 90 days.

Cash budget
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cash and loan balances.

Cash and carry
Purchase of a security and simultaneous sale of a future, with the balance being financed with a loan or repo.

Cash and equivalents
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and Banker's Acceptances. Cash equivalents on balance sheets include securities (e.g., notes) that mature within 90 days.

Cash commodity
The actual physical commodity, as distinguished from a futures contract.

Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable.

Cash cow
A company that pays out all earnings per share to stockholders as dividends. Or, a company or division of a company that generates a steady and significant amount of free cash flow.

Cash cycle
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.

Cash delivery
The provision of some futures contracts that requires not delivery of underlying assets but settlement according to the cash value of the asset.

Cash discount
An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days.

Cash dividend
A dividend paid in cash to a company's shareholders. The amount is normally based on profitability and is taxable as income. A cash distribution may include capital gains and return of capital in addition to the dividend.

Cash equivalent
A short-term security that is sufficiently liquid that it may be considered the financial equivalent of cash.

Cash flow after interest and taxes
Net income plus depreciation.

Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.

Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus non-cash expenses that were deducted in calculating net income.

Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in which the manager matches the maturity of each element in the liability stream, working backward from the last liability to assure all required cash flows.

Cash flow per common share
Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding.

Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.

Cash-flow break-even point
The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs.

Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash balances are down and it needs money for a few days.

Cash markets
Also called spot markets, these are markets that involve the immediate delivery of a security or instrument.

Cash offer
A public equity issue that is sold to all interested investors.

Cash ratio
The proportion of a firm's assets held as cash.

Cash settlement contracts
Futures contracts, such as stock index futures, that settle for cash, not involving the delivery of the underlying.

Cash transaction
A transaction where exchange is immediate, as contrasted to a forward contract, which calls for future delivery of an asset at an agreed-upon price.

Cash-equivalent items
Temporary investments of currently excess cash in short-term, high-quality investment media such as treasury bills and Banker's Acceptances.

Cash-surrender value
An amount the insurance company will pay if the policyholder ends a whole life insurance policy.

Cashout
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.

Vault cash
Currency that is physically held by banks and stored in vaults overnight.

No-shop agreement
The target company involved in merger or acquisition agrees not to consider other offers while negotiating with a particular bidder.

Tolling agreement
An agreement to put a specified amount of raw material per period through a particular processing facility. For example, an agreement to process a specified amount of alumina into aluminum at a particular aluminum plant.

Throughput agreement
An agreement to put a specified amount of product per period through a particular facility. For example, an agreement to ship a specified amount of crude oil per period through a particular pipeline.

Tax clawback agreement
An agreement to contribute as equity to a project the value of all previously realized project-related tax benefits not already clawed back to the extent required to cover any cash deficiency of the project.

Standstill agreements
Contracts where the bidding firm in a takeover attempt agrees to limit its holdings another firm.

Standby agreement
In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors.

Smithsonian agreement
A revision to the Bretton Woods international monetary system which was signed at the Smithsonian Institution in Washington, D.C., U.S.A., in December 1971. Included were a new set of par values, widened bands to +/- 2.25% of par, and an increase in the official value of gold to US$38.00 per ounce.

Sale and lease-back agreement
Sale of an existing asset to a financial institution that then leases it back to the user.

Revolving credit agreement
A legal commitment wherein a bank promises to lend a customer up to a specified maximum amount during a specified period.

Repurchase agreement
An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser (customer) perspective, the deal is reported as a reverse Repo.

Raw material supply agreement
As used in connection with project financing, an agreement to furnish a specified amount per period of a specified raw material.

Purchase agreement
As used in connection with project financing, an agreement to purchase a specific amount of project output per period.

Preferred stock agreement
A contract for preferred stock.

Note agreement
A contract for privately placed debt.

Bond agreement
A contract for privately placed debt.

Concession agreement
An understanding between a company and the host government that specifies the rules under which the company can operate locally.