Investor Glossary-cash cowInvestor Glossary-cash cowInvestor Glossary-cash cowInvestor Glossary-cash cowInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cash Cow

The HTML to link to this page
 

A cash cow represents the division of a company that provides a steady and significant cash flow. A cash cow tends to operate in a mature industry with little competition. A cash cow requires minimal ongoing investment and the cash flow that a cash cow provides tends to be used to support other divisions and ventures. For example, the Microsoft Windows operating system could be considered a cash cow. This division employs a relatively small group of people (low cost) yet produces a very significant cash flow. Microsoft uses this cash cow to fund other ventures such as gaming consoles. The basis for the phrase 'cash cow' is the dairy cow which (after purchased) can be milked for a relatively long time with little cost.



Rate this cash cow definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use