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Real capital |
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Real capitalWealth that can be represented in financial terms, such as savings account balances, financial securities, and real estate.Real capital Similar MatchesCapitalCapitalCash and physical assets owned by an individual or company. Market capitalisationMarket capitalisationThe market value of a quoted company which is calculated by multiplying its current share price by the number of shares in issue.e.g. Company A has 120 million shares in issue. The current market price is 96p. The market capitalisation is a shade over £115 million.The share prices of companies on the Official List of the London Stock Exchange move constantly in response to supply and demand, and as they move, so do market capitalisations. You can see what the market caps of these companies are by looking at the columns of prices in the financial press every day, or on websites.Of course, market caps calculated in this way do not necessarily reflect the actual market value of companies, as is shown when one company launches a takeover bid for another and (as frequently happens) pays a premium over the pre-bid price.Market caps are important for another reason, which is that some of the most important indices (especially the FTSE 100 and FTSE Mid 250) are based on them. Not only that - tracker funds make their investments on the basis of indices. Capital structureCapital structureThe components which form a company's capital :ordinary shares, preference shares, debentures and loan stock.In the US, the equivalent components are: common stock, long term debt and preferred stock. Authorised share capitalAuthorised share capitalThe total number of shares a company is authorised to issue by reference to its memorandum and articles of association.The amount of issued share capital must be lower or equal to the authorised share capital. i.e. a company cannot issue more shares than it is authorised to issue in its Articles. Planned capital expenditure programPlanned capital expenditure programBudgeted or projected outlays for major expenditures on permanent or fixed assets as outlined in the corporate financial plan. Further SuggestionsCapital GainsCapital lease capital Crony capitalism Capital requirements Unrealized capital gain or loss Capital appreciation or depreciation Venture capital limited partnership Perfect capital mobility capital expenditure Capital stock Risk based capital ratio Capitalism split capital investment trust Capital flow Short-term capital flow Capital account Capitalization ratios Human capital Capital turnover Working capital Capital movement paid in capital Investment Company with Variable Capital Capital expenditures |
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