Cash Hoard

AAA

DEFINITION of 'Cash Hoard'

A large amount of available money held by a company in anticipation of facilitating future projects or meeting future financial obligations. A cash hoard held by a company often makes the company attractive as a target of acquisition because of its sound financial situation.


Also referred to as a "cash reserve."

INVESTOPEDIA EXPLAINS 'Cash Hoard'

Analysts make frequent speculations regarding the purpose of the firms' surprisingly large cash hoards. Some economists argue that government measures to reduce interest rates and encourage borrowing and spending have, instead, led corporations to hoard more cash, rather than investing the money in expansions that would lead to new jobs. When the economy falters, companies may choose to increase their cash-to-assets ratio to avoid loans and debts, and to limit risks.

RELATED TERMS
  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. All Cash, All Stock Offer

    A proposal by one company to purchase all of another company's ...
  3. Cash Reserves

    In finance, cash reserves primarily refers to two things. One ...
  4. Bondholder

    The owner of a government or corporate bond. Being a bondholder ...
  5. Cash

    Legal tender or coins that can be used in exchange goods, debt, ...
  6. Corporate Bond

    A debt security issued by a corporation and sold to investors. ...
Related Articles
  1. Burn Rate Key Factor In Company's Sustainability
    Markets

    Burn Rate Key Factor In Company's Sustainability

  2. Understanding Financial Liquidity
    Options & Futures

    Understanding Financial Liquidity

  3. Cash: Can A Company Have Too Much?
    Markets

    Cash: Can A Company Have Too Much?

  4. What Is A Cash Flow Statement?
    Markets

    What Is A Cash Flow Statement?

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center