Cash ratio is usually discussed when a financial institution or investor is looking to offer a loan to a business. It refers to the liquidity of a business in terms of how easily it can service debt. You can understand the cash ratio definition better by seeing how it is calculated: Cash Ratio = Cash …
Post Type Archives: Glossary
Cash Settlement
If you are new to investing in the stock market, you must be wondering what is cash settlement. A cash settlement is a method in futures and options trading to settle the contracts at expiry. In this method, the seller does not deliver the physical underlying asset to the buyer but instead transfers cash. This …