CAPCommon Agricultural Policy
CapAn upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM).
CapA limit on the amount the interest rate or monthly payment can increase in an adjustable rate mortgage.
CapThe maximum which an adjustable rate mortgage may increase, regardless of index changes.
Capital turnoverCapital turnover
Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates how much a company could grow its current capital investment level. Low capital turnover generally corresponds to high profit margins.
Per capitaPer capita
Capital asset pricing model (CAPM)Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification. The CAPM says that the expected return of a security or a portfolio is equal to the rate on a risk-free security plus a risk premium multiplied by the assets systematic risk. Theory was invented by William Sharpe (1964) and John Lintner (1965).
Long-term capitalLong-term capital
In the capital account of the balance of payments, long-term capital movements include FDI and movements of financial capital with maturity of more than one year (including equities).
A term describing a company which has more equity capital than it needs. This is a subjective judgement. The more common problem is for a company to be undercapitalised. Lots of small companies have a business which is essentially healthy, but they run into trouble when growing rapidly without adequate capital backing.
Capital International Indexes
Capital appreciation fund
authorised share capital
Captive finance company
Pie model of capital structure
Capital market line (CML)
Capitalization Weighted Index
Morgan Stanley Capital International (MSCI)
capital asset pricing model
paid in capital