system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: When a company is bought for "$3 billion in cash" what actually happens?

Is cash actually exchanged, or is cash just a liquid asset that is transferred to a different account digitally?
gpt
The "cash purchase" is a juxtaposition to an equity exchange where stock is used to purchase another company.  A literal transfer of funds occurs - just like if you were to do a bank-to-bank transfer between two of your accounts, or to execute a wire transfer.