Capital Markets: What They Are and How They Work
A capital market is any organized venue where suppliers of money (investors, savers, institutions) trade financial instruments with entities that need funds (companies, governments).…
Capital Lease: What It Means in Accounting
• Definition: A capital lease — also called a finance lease — is a lease arrangement that effectively transfers the economic benefits and the…
Capitalized Interest: Definition and Example
• Capitalized interest is borrowing cost that a company adds to the recorded cost of a long-lived asset (for example, a building or ship)…
Capitalized Cost: Definition, Example, Pros and Cons
• A capitalized cost is an outlay that a company records as part of the purchase price or construction cost of a long-lived asset…
Capitalize: What It Is and What It Means When a Cost Is Capitalized
• To capitalize in accounting means recording a cost as an asset on the balance sheet instead of charging it immediately as an expense.…
Capitalization Rate: Cap Rate Defined With Formula and Examples
• Definition: The capitalization rate, commonly called the cap rate, is a simple ratio that expresses a property’s expected unlevered annual return. It equals…
Capitalization?
• Capitalization (accounting): recording a cost as an asset on the balance sheet because it provides economic benefits that extend beyond the current accounting…
Capitalization (Cap) Table: What It Is and How to Create and Maintain One
• A capitalization table, or cap table, is a structured spreadsheet or table that records who owns a company’s equity and in what amounts.…
Capitalism? History, Pros & Cons, vs. Socialism
• Capitalism is an economic system in which private persons or firms own and control capital goods (factories, machines, tools, raw materials). Production decisions—what…
Capital Improvement, and How Does It Work?
A capital improvement is a durable change to real property that increases its value, extends its useful life, or adapts it to a new…