Super Finance Glossary
Over 10,000 financial glossary terms...
Target Cash Balance
Target Cash Balance
Definition: 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.
Definition: 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.