Net cash balance

Beginning cash balance plus cash receipts minus cash disbursements.

Similar financial terms

Safety-net return
The minimum available return that will trigger an immunization strategy in a contingent immunization strategy.

Payments netting
Reducing fund transfers between affiliates to only a netted amount. Netting can be done on a bilateral basis (between pairs of affiliates), or on a multi-lateral basis (taking all affiliates together).

Netting out
To get or bring in as a net; to clear as profit.

Netting
Reducing transfers of funds between subsidiaries or separate companies to a net amount.

Net worth
Common stockholders' equity which consists of common stock, surplus, and retained earnings.

Net working capital
Current assets minus current liabilities. Often simply referred to as working capital.

Net salvage value
The after-tax net cash flow for terminating the project.

Net profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.

Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs should be rejected.

Net present value of future investments
The present value of the total sum of NPVs expected to result from all of the firm's future investments.

Net present value of growth opportunities
A model valuing a firm in which net present value of new investment opportunities is explicitly examined.

Net present value (NPV)
The present value of the expected future cash flows minus the cost.

Net period
The period of time between the end of the discount period and the date payment is due.

Net operating margin
The ratio of net operating income to net sales.

Net operating losses
Losses that a firm can take advantage of to reduce taxes.

Net lease
A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.

Net investment
Gross, or total, investment minus depreciation.

Net income
The company's total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.

Net float
Sum of disbursement float and collection float.

Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical discrepancies that arise in gathering balance of payments data.

Net change
This is the difference between a day's last trade and the previous day's last trade.

Net book value
The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.

Net benefit to leverage factor
A linear approximation of a factor, T*, that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure.

Net assets
The difference between total assets on the one hand and current liabilities and noncapitalized longterm liabilities on the other hand.

Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed end fund, the market price may vary significantly from the net asset value.

Net advantage to merging
The difference in total post- and pre-merger market value minus the cost of the merger.

Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset.

Net advantage of refunding
The net present value of the savings from a refunding.

Net adjusted present value
The adjusted present value minus the initial cost of an investment.

Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts payable and receivable, and long-term debt) are translated at the current rate while non-monetary items (e.g. inventory, fixed assets, and long-term investments) are translated at historical rates.

Monetary policy
Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.

Monetary gold
Gold held by governmental authorities as a financial asset.

Cabinet security
A stock or bond listed on a major exchange with low daily traded volume.

Monetary neutrality
A proposition that in the long run, a percentage rise in the money supply is matched by the same percentage rise in the price level, leaving unchanged the real money supply and all other economic variables such as interest rates.

This theory, a core belief of classical economics, was first put forward in the 18th century by David Hume. He set out the classical dichotomy that economic variables come in two varieties, nominal and real, and that the things that influence nominal variables ...

Net interest margin (NIM)
The difference between interest income and interest expense as a percentage of assets.

Net national product
The technical term for national income, it is GNP minus capital consumption.

High Net Worth (HNW) Person
An individual with more than $1,000,000 in liquid assets to manage.

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.

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 deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash deficiency the project may experience.

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.

Zero-balance account
A zero-balance account (ZBA) is a checking account in which zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover the checks presented.

Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of a given point in time.

Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of accounts receivable) at the end of succeeding months.

Off-balance-sheet financing
Financing that is not shown as a liability in a company's balance sheet.

Balance of trade
Net flow of goods (exports minus imports) between countries.

Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.

Balance sheet
Also called the statement of financial condition, it is a summary of the assets, liabilities, and shareholders' equity.

Balance sheet identity
Total Assets = Total Liabilities + Total Shareholders' Equity

Balanced fund
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.

Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.

Basic balance
In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account.

Compensating balance
An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.

Original principal balance
The total amount of principal owed on a mortgage before any payments are made.

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Naked option strategies

An unhedged strategy making exclusive use of one of the following: Long call strategy (buying call options ), short call strategy (selling or writing call options), Long put strategy (buying put options ), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in anot ...


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