Definition of Cash Out
- The ideal time to cash out your stock shares is just when the price has peaked before a fall. However, it is nearly impossible to predict this exact moment so intuition, luck and chance are all involved.
- The cash-out refinance option is used in real estate to allow a homeowner to refinance his mortgage for an amount higher than his house loan. The homeowner can pocket this difference of money for his own use.
- An individual or company can be forced to cash out their holdings to pay bills that are owed immediately. If such an individual or company declares bankruptcy, they must cash out their holdings. This money is used to pay as many bills as possible.