Capital

Advance: A Payment on Account or a Loan
Understanding Advance Payments and Loans: Historical Context, Key Concepts, Models, and Examples
Aggregate Production Function: Economic Concept
The Aggregate Production Function is a mathematical relationship showing the output of an economy as a function of capital, labor, and other inputs.
Allotment: A Comprehensive Overview
An in-depth examination of the method of distributing previously unissued shares in a limited company, known as allotment. The article covers historical context, key events, types, detailed explanations, importance, and practical applications.
AVERCH-JOHNSON EFFECT: Over-Investment in Capital
The observation that whenever the profit to capital ratio of a company is regulated, it has an incentive to over-invest in capital, leading to an inefficiently high level of capital accumulation.
Bootstrap: Startup Financing and Buyouts
An in-depth exploration of Bootstrap - covering leveraged buyouts and the financing of startups with minimal capital.
Called-Up Capital: A Comprehensive Overview
A detailed examination of called-up capital, including its definition, historical context, types, key events, explanations, mathematical models, importance, examples, considerations, and related terms.
Capital: An Essential Element in Economics and Finance
Understanding the fundamental concept of capital, its types, historical context, significance, and applications in economics and finance.
Capital Accumulation: Growth of Wealth
Capital Accumulation refers to the increase in wealth through investment or profits. It's essential in economics, finance, and broader economic theory as it encompasses both capital goods and financial capital.
Capital Accumulation: Economic Growth and Investment
Exploring the process and impact of increasing the stock of capital on economic growth in the short and medium term, and the role it plays in long-run growth.
Capital Deepening: An Increase in Capital Intensity in Production
An overview of Capital Deepening, explaining its historical context, types, key events, mathematical models, and significance in economics and productivity.
Capital Employed: An In-depth Examination
Capital Employed refers to the total capital investment necessary to run a company effectively, either represented by the sum of shareholders' equity and long-term debt, or by the sum of fixed assets and net current assets. It plays a crucial role in ratio analysis, particularly for calculating the Return on Capital Employed (ROCE).
Capital Expenditures: Costs Capitalized as Assets
Comprehensive Analysis of Capital Expenditures, Including Definition, Types, Examples, and Considerations.
Capital Fund: An Essential Financial Foundation
An in-depth exploration of Capital Fund, its significance in finance and investment, historical context, types, key events, detailed explanations, examples, and much more.
Capital Injection: Infusion of Funds
An in-depth exploration of capital injection, its purpose, types, examples, and implications in financial health.
Capital Instrument: A Broad Category of Instruments Including Both Equity and Debt
A comprehensive coverage of capital instruments, exploring its definition, types, key events, formulas, importance, applicability, examples, considerations, and related terms.
Capital Maintenance: Ensuring the Real Value of Capital
Capital Maintenance refers to the concept and legal requirements to ensure that a company's capital is maintained at its real value.
Capital Requirements: Financial Reserves to Safeguard Against Insolvency
Capital requirements are financial reserves that institutions must hold according to regulatory standards to safeguard against insolvency, ensuring stability in the financial system.
Capitalist: Understanding the Wealth Accumulation through Capital Ownership
A detailed exploration into the concept of a capitalist, focusing on the historical context, types, significance, examples, and associated terms.
Capitalization: Comprehensive Overview and Significance
An in-depth examination of the concept of capitalization, its types, historical context, importance in finance and accounting, key events, mathematical models, and practical examples.
Cobb-Douglas Function: A Key Economic Model
The Cobb-Douglas Function is a fundamental model used in economics to represent production functions and utility functions, illustrating the relationship between inputs (capital and labor) and output.
Cold Money: Long-term Capital Investments for Stable Returns
Cold money refers to long-term capital investments aimed at securing stable, long-term returns, in contrast to the short-term nature of hot money.
Common Market: A Comprehensive Overview
Explore the concept of a Common Market, its historical context, types, key events, detailed explanations, and more.
Cost-of-Production Theory: Understanding the Determinants of Value
A comprehensive exploration of the Cost-of-Production Theory, which expands on the Labor Theory of Value by incorporating capital and other non-labor costs.
Creditors' Buffer: Assurance for Creditors through Fixed Capital
The fixed capital of a company, which provides assurance to creditors by indicating a stable financial base that cannot be reduced or distributed without special permission.
Distribution: Allocation and Payment Mechanisms
An in-depth look into the concept of distribution, including its types, applications, key events, importance, and much more.
Equity Capital: The Backbone of Corporate Financing
Equity Capital refers to funds raised by a company in exchange for ownership shares. It represents the capital invested by shareholders, allowing companies to raise money without incurring debt.
Equity Contribution: Understanding Personal Investment in Assets
Equity Contribution refers to the amount of capital that a borrower personally invests into an asset, encompassing various forms and implications in financial arrangements.
Equity Partnership: A Comprehensive Overview
An in-depth explanation of Equity Partnership, where partners invest capital and share ownership of the business based on their investment.
Equity Withdrawal: An In-Depth Exploration
Equity Withdrawal refers to raising a new or increased mortgage for purposes other than buying or improving the mortgaged property, often used to start or expand a business or pay off unsecured debts.
Factor Prices: The Pricing of Production Services
An in-depth exploration of the prices of services of factors of production including labour, land, and capital. Examining the implications of competitive equilibrium and non-competitive markets.
Factor-Intensity: An Essential Economic Concept
Factor-Intensity indicates which factors of production (capital or labor) are used more intensively in producing a good or service, influencing economic and trade policies.
Factors of Production: A Comprehensive Analysis
An in-depth look at the resources required to produce economic goods, including land, labor, capital, and entrepreneurial ability.
Factors of Production: Resources Used in the Production of Goods or Services
An in-depth look into the key resources, known as Factors of Production, that are used in creating goods and services, including labor, capital, and land. This article explores their historical context, types, and significance in economics.
Fictitious Capital: Capital Increased on Paper Methods
Fictitious Capital refers to capital that increases through means that do not reflect genuine productive output, often through financial instruments and speculative investments.
Financing Cost: A Comprehensive Guide to Borrowing Costs
An in-depth exploration of financing costs, including their types, significance, impact on businesses, mathematical models, and key considerations.
Functional Income Distribution: A Comprehensive Overview
The distribution of income among the various factors of production such as wages for labor, rent for landlords, and returns to capital. This article provides historical context, key events, and detailed explanations on Functional Income Distribution.
Growth Accounting: Understanding Economic Growth Contributions
Growth Accounting is a method used to determine the contribution of each factor of production to the growth of output. This article explores its historical context, types, key events, explanations, models, charts, importance, and applicability.
Initial Investment: Understanding the Capital Outlay
A comprehensive guide to the concept of initial investment, including its components, significance, and application in various financial contexts.
Interest on Capital: Financial Compensations for Contributions
Interest on Capital refers to payments made to partners for their capital contributions in a business partnership. This encompasses historical context, calculation methods, and its importance in business finance.
Investment: Comprehensive Overview
Investment encompasses the acquisition of assets for future returns, either in physical, financial, or human capital forms.
Investment Expenditure: Capital Allocation for Future Benefits
Investment Expenditure refers to the allocation of funds by businesses and governments to purchase physical or intangible assets, ensuring long-term future benefits and economic growth.
Liquidity vs. Capital: Key Banking Concepts
A comprehensive comparison of Liquidity and Capital in the context of banking, exploring their roles, importance, and differences.
Marginal Product of Capital (MPK): Additional Output Generated by an Additional Unit of Capital
The Marginal Product of Capital (MPK) refers to the additional output produced as a result of investing one more unit of capital. It is a fundamental concept in economics, highlighting the incremental increase in production capacity.
Net Assets: Definition, Context, and Importance
Comprehensive coverage of Net Assets, encompassing definitions, historical context, key events, formulas, and practical implications.
Net Capital Formation: Understanding Investment Growth
An in-depth exploration of net capital formation, including its definition, significance, and impact on economic development.
Net Investment: Understanding Capital Accumulation
Explore the concept of Net Investment, its significance in economics, types, key events, formulas, and real-world applications.
Paid-up Share Capital: Definition and Overview
A comprehensive explanation of paid-up share capital, its significance, types, historical context, formulas, key events, related terms, and much more.
Physical Capital: The Tangible Assets that Drive Productivity
Physical capital refers to the tangible assets that are used in the production of goods and services, including machinery, buildings, and equipment. It plays a crucial role in economic growth and is distinct from financial and human capital.
Potential Economic Growth: Understanding Potential Output
Potential economic growth refers to the maximum possible growth an economy can achieve, considering factors such as capital, labor, and technology. It is a critical concept in macroeconomics that helps policymakers and analysts project long-term growth trends.
Pre-Sales Commitment: Agreements to Purchase or Lease Units Before Project Completion
Pre-Sales Commitment refers to legally binding agreements to purchase or lease units within a property development project before its completion. It is a crucial factor often necessary for securing take-out loans.
Preferred Equity: Capital with Fixed Dividends and Priority
Preferred equity refers to capital raised through the issuance of preferred shares, which generally come with fixed dividends and have priority over ordinary shares in terms of dividend payments and asset liquidation.
Private Equity (PE): Capital Investment Made into Companies that Are Not Publicly Traded
Detailed overview of Private Equity (PE), discussing its definitions, types, special considerations, historical context, examples, applicability, related terms, and frequently asked questions.
Property: An In-Depth Exploration
An encyclopedic entry covering the concept of property, including historical context, types, key events, detailed explanations, mathematical models, charts, applicability, examples, and more.
Risk-Based Capital: A Measure of an Insurance Company's Capital Relative to Its Risk Profile
Risk-Based Capital (RBC) is a metric used to determine the minimum amount of capital that an insurance company needs to support its overall business operations in consideration of its risk profile.
Sources of Capital: The Backbone of Business Financing
An extensive overview of the various sources from which businesses obtain their capital, including owner savings, borrowing, selling equity, depreciation allowances, trade credit, and government funding.
Stock Exchange: A Comprehensive Guide to Securities Trading
An in-depth article exploring the history, types, key events, functionalities, importance, and various aspects of stock exchanges around the world.
Subscribed Capital: The Portion of Issued Capital Committed by Investors
Subscribed Capital represents the portion of issued capital that investors have committed to pay. It signifies investor interest and confidence in a company's equity offerings.
Syndicate: Collective Risk Sharing at Lloyd's
A detailed exploration of the concept of syndicates at Lloyd's, their structure, functions, historical context, key events, importance, and impact in the realm of insurance.
Uncalled Capital: Understanding the Uncalled Portion of Subscribed Capital
Uncalled capital refers to the portion of the subscribed capital that has not yet been called up by the company. This comprehensive article explores its historical context, types, key events, detailed explanations, and much more.
Undercapitalization: The Pitfall of Insufficient Capital
An in-depth exploration of undercapitalization, a state where a company lacks sufficient capital for its operations. Discussing historical context, types, key events, formulas, charts, importance, and applicability with examples, and related terms.
Capital Contributed in Excess of Par Value: Understanding Additional Paid-in Capital
Capital Contributed in Excess of Par Value refers to the amount paid for stock above its stated par value, as shown in the Owner's Equity section of a balance sheet.
Capital Paid in Excess of Par Value: Definition and Explanation
An in-depth look at the concept of capital paid in excess of par value, also referred to as additional paid-in capital, including its definition, importance, and implications for financial reporting.
Capital Resource: Key Elements in Production
Capital resources include any goods used in the production of other goods, such as factories, buildings, and equipment. This comprehensive guide explores their types, importance, examples, and historical context.
Econometrics: The Use of Computer Analysis and Statistical Modeling Techniques
Econometrics utilizes computer analysis and statistical modeling techniques to describe numerical relationships among key economic factors, such as labor, capital, interest rates, and government policies, and to test changes in economic scenarios.
Guaranteed Payments for Capital: Comprehensive Overview
Guaranteed Payments for Capital are payments made to a partner by a partnership, determined without regard to partnership income, for the use of that partner's capital.
Incremental Cost of Capital: Understanding the Concept
An in-depth exploration of Incremental Cost of Capital and its implications in finance and investment decisions. See Marginal Cost.
Invest: Transfer Capital to an Enterprise for Income or Profit
Invest: The act of committing capital to an enterprise with the goal of securing income or profit. This encompasses a variety of financial strategies, market areas, and economic activities aimed at generating returns.
Marginal Cost of Capital: Understanding the Cost of Additional Financing
An in-depth examination of the Marginal Cost of Capital, its importance in financing decisions, comparisons with average cost of capital, and its application in discounting cash flows.
National Wealth: Sum Total of the Value of All Capital and Goods Held Within a Nation
National Wealth refers to the aggregate value of all capital and goods possessed within a nation, encompassing tangible and intangible assets, resources, and properties.
Original Equity: Definition and Context
Original Equity refers to the initial cash investment made by the underlying owner, distinctly separate from sweat equity and capital calls.
Purchase Capital: An Essential Financial Concept
An in-depth exploration of Purchase Capital—its importance, components, and applications in business and investments.
Small Business Investment Company (SBIC): Financial Support for Small Businesses
A Small Business Investment Company (SBIC) is an entity that provides financial support, advice, and capital to small businesses, operating under the Small Business Investment Act of 1958.
Social Overhead Capital: Indirectly Measurable Economic Investments
An exploration of Social Overhead Capital, investments in areas such as education and health care, whose productivity or effectiveness cannot be directly measured.
Venture: Business Undertaking Entailing a Degree of Risk
An entrepreneurial activity in which capital is exposed to the risk of loss for the possibility of reaping a profit reward.
Understanding Neoclassical Growth Theory: Predictions and Applications
An in-depth look at Neoclassical Growth Theory, exploring how equilibrium is achieved by varying labor and capital in the production function, its predictions, historical context, and practical applications.

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