| Home | About Us | Loan Advice | Secured Loans | Personal Loans | Bad Credit Loans | Homeowner Loans | Contact Us |
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
|
|||||||||||||||||||
  
When a stock is sold for a profit, its the difference between the net sales price of securities and their net
cost, or original basis. If a stock is sold below cost, the difference is a capital loss.
Capital gains yield
The price change portion of a stocks return.
Capitalization
The debt and/or equity mix that funds a firms assets.
Capitalization method
A method of constructing a replicating portfolio in which the manager purchases a number of the largest-
capitalized names in the stock glossary in proportion to their capitalization.
Capitalization ratios
Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the
extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the
context of the stability of industry and company earnings and cash flow.
Capitalization table
A table showing the capitalization of a firm, which typically includes the amount of capital obtained from each
source - long-term debt and common equity - and the respective capitalization ratios.
Capitalized
Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items
with useful lives greater than one year.
Capitalized interest
Interest that is not immediately expensed, but rather is considered as an asset and is then amortized
through the income statement over time.
Capital lease
A lease obligation that has to be capitalized on the balance sheet.
Capital loss
The difference between the net cost of a security and the net sale price, if that security is sold at a loss.
Capital market
The market for trading long-term debt instruments (those that mature in more than one year).
Capital market efficiency
Reflects the relative amount of wealth wasted in making transactions. An efficient capital market allows the
transfer of assets with little wealth loss. See: efficient market hypothesis.
Capital market imperfections view
The view that issuing debt is generally valuable but that the firms optimal choice of capital structure is a
dynamic process that involves the other views of capital structure (net corporate/personal tax, agency cost,
|
