Cash Settlement

Business / Taxes / Cash Settlement: To settle a futures contract where the underlying asset is a financial instrument, such as a stock index or interest rate rather than a physical commodity, you deliver cash. In contrast, when you settle a futures contract on other commodities, you deliver the physical product. But because index values or interest rates are intangible, physical delivery is not possible. The way you calculate the amount due is defined in the contract. When the underlying instrument is an index, this usually involves multiplying the value of the index times a fixed amount. For example, the cash settlement of a contract on the Standard & Poor’s MidCap 400 Index is determined by multiplying the value of the index times $500. However, in the vast majority of cases, futures contracts are offset before the settlement date, and no delivery is required.

Other Words for Cash

Cash Noun Synonyms: money, currency, bills, notes, banknotes, change, hard cash or money, specie, coin of the realm, legal tender, moolah, dough, bread, loot, spondulicks or spondulix, lolly, ready, readies, scratch, gelt
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Other Words for Settlement

Settlement Noun Synonyms: payment, defrayal, discharge, liquidation, satisfaction, settling, quittance, clearing, clearance
Settlement Verb Synonyms: colony, outpost, post, camp, community, encampment, village, hamlet
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Insurance Settlement

Business / Finance / Insurance Settlement: The law of averages. The average outcome for many independent trials of an experiment will approach the expected value of the experiment. MORE

Ledger Cash

Business / Finance / Ledger Cash: A firm's cash balance as reported in its financial statements. Also called book cash. MORE

Life Settlement

Business / Taxes / Life Settlement: If you are over age 70 and no longer need your life insurance policy, you may be able to sell it to a third party in what’s called a life settlement. You’re paid a cash amount less than the death MORE

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