Category
page 1Capital management
opportunity cost
when presented with multiple opportunities, the cost of making a certain choice in comparison to its alternatives
share capital
portion of a company's equity that has been obtained by trading stock to a shareholder for cash
hedge
investment position intended to offset potential losses or gains that may be incurred by a companion investment
profit maximization
process to determine the highest profits for a firm
depreciation
gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question
Capital deepening
productivity phenomenon
Patient capital
long-term capital with no expectation for quick profit. Used in social enterprises
undercapitalization
Under-capitalization refers to any situation where a business cannot acquire the funds they need. An under-capitalized business may be one that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy, may be one that is over-exposed to risk, or may be one that is financially sound but does not have the funds required to expand to meet market demand.
Capital asset
property of any kind held by an assessee
Liquid capital
Economic term