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War Chest

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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.



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