Question

how does cash transaction mean​

Answer 1

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A cash transaction is a transaction where there is an immediate payment of cash for the purchase of an asset. It differs from other types of transactions that involve delayed delivery of the purchased item, or delayed payment for the item, such as forward contracts, futures contracts, credit transactions, and margin transactions.

KEY TAKEAWAYS:-

1.A cash transaction is the immediate payment of cash for the purchase of an asset.

2.Some market stock transactions are considered cash transactions although the trade may not settle for a few days.

3.A futures contract is not considered a cash transaction.

Answer 2

Answer :-

1. A cash transaction is the immediate payment of cash for the purchase of an asset.

2. Some market stock transactions are considered cash transactions although the trade may not settle for a few days.

3. A futures contract is not considered a cash transaction.