financial services

Capital Asset

Tangible and generally illiquid property used by a business to generate profit, such as equipment and buildings. The usefulness of the asset is expected to extend beyond one year.

Capital Expenditure

Known as CAPEX, capital expenditures describe funds used by a business to upgrade or acquire new physical assets, such as tools and other equipment, for the purpose of attaining future benefits. In the accounting context, capital expenditures are...

Capital Gains

Definition from Nolo’s Plain-English Law DictionaryProfit on the sale of a capital asset, such as stock or real estate. If a person sells a primary residence, current tax law lets the seller exclude $250,000 in profit from capital gains tax. A couple can...

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.

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

Definition from Nolo’s Plain-English Law DictionaryAn expenditure for a capital asset that must be deducted from business income over more than one year, as opposed to an ordinary expense.

Definition provided by Nolo’s Plain-English Law Dictionary.

Capitalized Interest

Definition from Nolo’s Plain-English Law Dictionary1) Interest on a loan that is added to the principal balance. For example, interest may accrue on a student loan while the debtor is in school, which is then added to the principal on the loan. This...

Capitalized Value

Definition from Nolo’s Plain-English Law DictionaryThe current value of an asset, based on the total income expected to be realized over its economic life span. The anticipated earnings are discounted (given a lower value) so they take into account the...

Cashier's Check

Definition from Nolo’s Plain-English Law DictionaryA check issued by a bank on its own account, not on a depositor's account. The bank receives money from the purchaser in the amount of the cashier's check, then issues the check and guarantees its payment...

Certificate of Deposit (CD)

Definition from Nolo’s Plain-English Law DictionaryA document issued by a bank in return for a deposit of money. Interest rates on CDs are fixed, and usually higher than on savings accounts, because banking institutions require a commitment to leave the...

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