Cash equivalents are investments securities that are meant for short-term investing; they have high credit quality and are highly liquid. Cash equivalents, also known as “cash and equivalents,” are one of the three main asset classes in financial investing, along …
Cash is legal tender—currency or coins—that can be used to exchange goods, debt, or services. Sometimes it also includes the value of assets that can be easily converted into cash immediately, as reported by a company. Understanding Cash Cash is …
A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital …
A capital loss is the loss incurred when a capital asset, such as an investment or real estate, decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original …
Capital gain is an increase in a capital asset’s value. It is considered to be realized when you sell the asset. A capital gain may be short-term (one year or less) or long-term (more than one year) and must be …
Capital employed, also known as funds employed, is the total amount of capital used for the acquisition of profits by a firm or project. Capital employed can also refer to the value of all the assets used by a company …
A capital commitment is the projected capital expenditure a company commits to spending on long-term assets over a period of time. It also refers to the securities inventory carried by a market maker. The capital commitment may also refer to …
Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended …
Capital is a broad term that describes something that confers value or benefit for the possessor, such as a factory and its machinery, intellectual property like parents, or the financial assets of a business or an individual. While money itself may …
Called up share capital is shares issued to investors under the understanding that the shares will be paid for at a later date or in installments. Shares may be issued in this manner in order to sell shares on relaxed …