   
|
|
|
|
War Chest
|
A war chest contains funds that are set aside and used to deal with unexpected changes in an environment. The war chest may be used to fund a war, a political campaign or a business. Typically, "war chest" is used to refer to the latter. A corporation may set aside cash (the war chest) in anticipation of events such as an acquisition, hostile takeover or market consolidation. The money in the war chest has been earmarked for such occasions. "War chest" is a slang term that originated from the medieval practice of literally filling a chest with money, only to open in it a time of war. The reserve of cash in the war chest is therefore a precaution and form of protection - it is a method of preparation for difficult times ahead. |
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms : deferred revenue, 401a, forward PE, minority interest, deferred tax, real GDP, retained earnings, 144a, average price per share, trailing PE, wholly-owned subsidiary, diluted share, FICO score, net book value, LIBOR, cancelled check, debt service coverage, 1031 exchange, inflation, liquidity ratio, EBITDA, arm's length transaction, per diem, option premium, command economy, commodity, COO, 1035 exchange, reverse mortgage, Zero Cost Collar, balance sheet, phantom income, margin rate, labor relations, net income, current ratio, assets under management, required rate of return, covered put, Key Rate Duration, class C shares, APR, quant, Russell 3000, stock, asset/equity ratio, CUSIP, Black Friday, annualize
|
|
|
|
Rate the war chest definition... |
|
Receive our free Term of the Day email. |
|
|
