Target cash balance

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Target cash balance
Definition: [crh] Optimal amount of cash for a firm to hold, considering the trade-off between the opportuDefinition: nity costs of holding too much cash and the trading costs of holding too little cash.

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.
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Target Cash Balance
The ideal amount of cash that a company wishes to hold in reserve at any given point in time.

Related: Intangible asset 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.

See also: Trading costs, Opportunity costs, Opportunity cost, Optimal, Trade-off