Cryptocurrency Q&A
What do companies do with idle cash?
What do companies do with idle cash?
ethan_thompson_journalist
Thu Oct 31 2024
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7 answers
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I'm wondering about how companies typically handle their idle cash, the money that's not currently being used for operations or investments. What are the common strategies or options they explore with this excess cash?
7 answers
Valentina
Sat Nov 02 2024
Acquiring other companies is also a viable option for corporations with substantial cash reserves. This can allow them to diversify their operations and enter new markets.
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Martina
Sat Nov 02 2024
Corporations have several options when it comes to utilizing their cash reserves.
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EmilyJohnson
Sat Nov 02 2024
One strategy is to invest in their own securities through stock buyback programs. This can increase the value of the remaining shares by reducing the number of shares available in the market.
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KimchiQueenCharm
Sat Nov 02 2024
Another option is to invest in capital, Research and Development, or hire more employees. This can help the company grow and expand its operations, leading to increased revenue and profitability.
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Valentina
Fri Nov 01 2024
Corporations can also return the money to shareholders in the form of dividends. This can be a popular choice among investors who prefer regular income from their investments.
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