WAR CHEST

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A war chest is the cash set aside by a company in anticipation of a capital intensive event, such as an acquisition or a market consolidation. It can also be used as a buffer against adverse events during uncertain times.
War chest can also be a specific fund set aside to defend lawsuits because it is better to have the resources to pay for legal counsel to defend meritless lawsuits than to pay a "legal ransom" just to make such a lawsuit go away.
A war chest is often invested in short term liquid investments such as treasury bills and bank deposits which can be accessed on demand.

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