Related Words

Capital: Broadly, all the money and other property of a corporation or other enterprise used in transacting its business.

Capital Budgeting: A firm's planned capital expenditures.

Capital Builder Account (CBA): The process of choosing the firm's long-term capital assets.

Average Cost Of Capital: A firm's required payout to bondholders and stockholders expressed as a percentage of capital contributed to the firm. Average cost of capital is computed by dividing the total required cost . . . View Full Definition

Additional Paid-In Capital: The amount paid by investors for stock over and above its par value. See also contributed capital.

Venture Capital Limited Partnership: An investment in a start-up business that is perceived to have excellent growth prospects but does not have access to capital markets. Type of financing sought by early-stage companies seeki . . . View Full Definition

Capital Formation: The transfer of capital abroad in response to fears of political risk.

Capital Gains Tax: A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.

Capital Rationing: The line defined by every combination of the risk-free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the capital asset pr . . . View Full Definition

Capital Market Line (CML): The view that issuing debt is generally valuable, but that the firm's optimal choice of capital structure involves various other views of capital structure (net corporate/personal tax, agenc . . . View Full Definition