Contributed Capital

Business / Finance / Contributed Capital: An investment style that leads one to buy assets that have performed poorly and sell assets that have performed well. There are two possible reasons this strategy might work. The first is a mean-reversion argument; that is, if the asset has deviated from its usual level, it should eventually return to that usual level. The second reason has to do with overreaction. Investors might have overreacted to bad news sending the asset price lower than it should be.

Other Words for Capital

Capital Noun Synonyms: head, top, crown, cap
Capital Adjective Synonyms: chief, main, major, important, cardinal, central, principal, prime, primary, paramount, pre-eminent, foremost, leading
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Legal Capital

Business / Accounting / Legal Capital: The amount of contributed capital not available for dividends: usually equal to the par or stated value of outstanding capital stock. MORE

Additional Paid-In Capital

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

Average Cost Of Capital

Business / Finance / 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 of capita MORE

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