1) In the accounting context, it is where a cost is recorded as a a price of the asset rather than as an expenditure.
2) In the corporate context, it is a firm's "invested capital," meaning the business' corporate stock plus long-term debt plus retained earnings.
3) The total dollar value of a company's outstanding shares - better known as market capitalization. It is calculated by multiplying the total number of outstanding shares by the market value of one share.
Definition from Nolo’s Plain-English Law Dictionary
1) The writing off of a capital expenditure proportionately over future years when the benefit from the expenditure is not confined to the period under consideration. 2) The sum of a corporation's long-term debt, stock, and retained earnings.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm