Capital

Business / Taxes / Capital: Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that you're investing in the fund. Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business. The term capital markets refers to the physical and electronic environments where this capital is raised, either through public offerings or private placements.

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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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

Net Capital Requirement

Business / Finance / Net Capital Requirement: SEC requirement that member firms and nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1. MORE

Risk-Based Capital Ratio

Business / Finance / Risk-Based Capital Ratio: Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. MORE

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