finance

Capital Gains

Capital gain, for income tax purposes, is the gain realized from sale of capital assets. The difference between the original purchase price and the sale price is the gain realized. The tax on capital gains only occurs when an asset is sold or “...

Capital Investment

Money invested into a business with the expectation that the money will be recovered through future profits. Generally, the money is used for capital expenditures as opposed to daily working capital.

Capital Stock

Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. A corporation’s charter establishes the amount of shares the corporation may issue, and the board of...

Capitalization

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...

Capitalized Expenditure

As opposed to an ordinary (or operating expense), which covers the day-to-day costs necessary to keep a business running, a capitalized expenditure is an expense that is made to 1) acquire an asset (whether tangible or intangible) that has a...

Capitalized Interest

Capitalized interest refers to accrued interest on an asset or loan that is not immediately reported on the company’s income statement as an expense like other interests. Instead, the corporation’s balance sheet reflects the interest in the...

Capitalized Value

Capitalized value is the current worth of an asset, usually real estate, based on a calculation of expected income from the asset over the course of its economic lifespan. Capitalized value is a useful tool for investors to decide whether an...

Cashier's Check

A cashier’s check is a bill of exchange, drawn by a bank upon itself (the bank is the debtor), payable to another person, showing the payee’s authorization to receive the amount represented on the check from the bank.

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Certificate of Deposit (CD)

Certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time and during that time, the account accrues interest, which the issuing bank pays out. The lump sum deposited must be in the account...

Certified Check

Certified Check is a type of check that guarantees that there will be enough funds available for the recipient by the issuing bank. Additionally, the bank also verifies that the signature on the check is genuine. Certified checks are used to...

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