Reserves

From Reuters Financial Glossary

A company's reserves are primarily profits retained in the business and accumulated over the years, rather than paid out by way of dividends. They are usually held as cash or in highly liquid assets. Shareholders have no rights over reserves so that a company can disburse them or not, as it sees fit, within the usual accounting rules. The term reserves is also used to describe the official foreign exchange reserves held by governments to ensure they can meet current and near term claims.

See also: Earnings