Cap: Composed of a layer of warmer, dryer air aloft which may suppress or delay the development of thunderstorms. As an air parcel rises, it becomes cooler relative to the ambient, or surrounding, air in the cap and therefore, less buoyant and unable to rise further. Also referred to as a lid.

 

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Cap: Composed of a layer of warmer, dryer air aloft which may suppress or delay the development of thunderstorms. As an air parcel rises, it becomes cooler relative to the ambient, or surrounding . . . View Full Definition

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

Statement Of Partners Capital: A partnership report showing the changes in the capital balances: similar to a statement of retained earnings for a corporation.

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

Capital Gains Yield: The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achieved once an asset is held for at least 12 months, is taxed at a maximum rate of 20% (taxpay . . . View Full Definition

Capital Lease: Market indexes maintained by Morgan Stanleythat track major stock markets worldwide.

Capital Requirements: Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it.

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