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In: Finance

why do company hold money

why do company hold money

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Expert Solution

There are many reasons why companies hold cash :-

Some are :-

Company need money to meet uncertainities, unexpected events or fluctuations in the market.

Company need money to invest in different shares of stock market. Holding money is essential here to invest in securities.

To pay taxes to government, dividend payment to its shareholders.

Ucompany hold money / cash to meet uncertain events

jeff jeffy answered 2 years ago
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