Commission Cap: The limit placed on commissions paid to travel agents for the sale of air tickets, regardless of their price; designed to allow airlines to increase their profits at the expense of their primary distribution system the travel agents.

 

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Commission Cap: The limit placed on commissions paid to travel agents for the sale of air tickets, regardless of their price; designed to allow airlines to increase their profits at the expense of their pri . . . View Full Definition

Market Capitalization: Market capitalization is a measure of the value of a company, calculated by multiplying the number of either the outstanding shares or the floating shares by the current price per share. For . . . View Full Definition

Marginal Efficiency Of Capital: The percentage yield earned on an additional unit of capital.

Market Capitalization Rate: Expected return on a security. The market-consensus estimate of the appropriate discount rate for a firm's cash flow.

Maximum Capital Gains Mutual Fund: A mutual fund whose objective is to produce capital gains by investing in small or risky rapid-growth companies.

Mid-Capitalization (Mid-Cap) Stock: A mid-cap stock is one issued by a corporation whose market capitalization falls in a range between $2 billion and $10 billion, making it larger than a small-cap stock but smaller than a lar . . . View Full Definition

Micro-Cap Stock: A micro-cap stock is one with a smaller market capitalization — sometimes much smaller — than stocks described as small-caps. (Market capitalization is figured by multiplying the current mar . . . View Full Definition

Long-Term Debt-Capitalization: Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common . . . View Full Definition

Long-Term Debt As A Percent Of Total Capital: Long-term debt including capitalized leases expressed as a percentage of total capital (common and preferred stock plus long term debt). It reflects the use of leverage by the company.

Legal Capital: Value at which a company's shares are recorded in its books.