Definition of War Chest

What is a war chest? What is the definition of the term war chest? What does the term war chest mean?

You have probably heard the term "war chest" used on a channel like CNBC or Bloomberg.

Definition of War Chest in finance - IllustrationA war chest is a stockpile of money that a company will use for some particular event that will be capital-intensive.

For instance, a company might build a war chest to try to take over a competitor or they might build a war chest to aggressively market a new product.

A company might also build up a war chest to protect against a hostile takeover or to fund an expected expensive legal battle.

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