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Capital scarce |
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Capital scarceA country is capital scarce if its endowment of capital is small compared to other countries. Relative capital scarcity can be defined by either the quantity definition or the price definition.Similar MatchesCapital adequacy ratioCapital adequacy ratioThe ratio of a bank's capital to its risk-weighted credit exposure. International standards recommend a minimum for this ratio, intended to permit banks to absorb losses without becoming insolvent, in order to protect depositors. Capital gainCapital gainThe amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, your gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexationIn calculating the acquisition cost, you can include including broker commissions and stamp duty. Depending on when you bought the shares, the base cost can be increased through the indexation allowance - a good thing from a tax point of view because the higher your acquisition cost, the lower your chargeable gain.In calculating the disposal proceeds, you can deduct commissions and other charges incurred in the process of selling.Whether you have to pay Capital Gains Tax on the chargeable gain will depend on whether you have already used up your annual exemption (the amount of gains you can make in any one year without paying CGT), and on the level of your other gains or losses in the tax year.Taper relief, which reduces the rate of tax you pay on gains, may also be available, depending on how long you have held the shares at the time you sell them. Capital rationingCapital rationingPlacing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it. Working capitalWorking capitalDefined as the difference between current assets and current liabilities (excluding short-term debt). Current assets may or may not include cash and cash equivalents, depending on the company. Capital growthCapital growthWhere the original amount you invest increases over a period of time. Generally this is achieved by interest or dividends being added back to an account for reinvestment. Further SuggestionsPecking order view (of capital structure)capital adequacy Capital flow Capital surplus Capital intensive capital market theory Undercapitalized Net working capital Working capital management Capital Capital lease Capital Builder Account (CBA) Contributed capital Capital Assets Short-term capital flow overcapitalised Capital expenditures Capital appreciation Perfect capital mobility Capital gains capital gains tax Recapitalization proposal Overcapitalization Capital augmenting Capital intensive |
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