Definition of Capital Markets Capital markets are defined as financial markets where debt or equity-backed securities are bought and sold. That means they are used by sellers to raise capital for companies, governments, and other entities by issuing and trading a variety of different financial instruments. These instruments can be […]
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Capital Project
Definition of Capital Project A capital project is an investment in a long-term asset or infrastructure that is expected to generate economic returns over a period of time. That means it is an investment (often a significant one) in a physical asset, such as a building, a bridge, or a […]
Read moreCapital Structure
Definition of Capital Structure Capital structure is the mix of debt and equity that a company uses to finance its operations. That means it describes the proportion of a company’s capital that is funded by debt and equity. In most cases, the capital structure of a company is determined by […]
Read moreCapitalization Rate
Definition of Capitalization Rate The capitalization rate, also known as the cap rate, is a measure of the rate of return, typically on a real estate investment. It is calculated by dividing the net operating income of a property by its current market value (i.e., capitalization rate = net operating […]
Read moreCash And Cash Equivalents (CCE)
Definition of Cash and Cash Equivalents (CCE) Cash and Cash Equivalents (CCE) are short-term, highly liquid assets that are cash or can be converted into cash quickly. That means they are assets that can be easily converted into cash without any significant loss in value or time. Examples of CCE […]
Read moreCash Budget
Definition of Cash Budget A cash budget is a financial plan that outlines the expected cash inflows and outflows of a business over a certain period of time. That means it is a forecast of the company’s cash position at any given point in time. It is usually prepared on […]
Read moreBusiness Economics
Definition of Business Economics Business Economics is the application of economic theory and methods to the analysis of business decisions. That means it is the study of how businesses use resources to produce goods and services and how they interact with the markets in which they operate. It also includes […]
Read moreCapital Stock
Definition of Capital Stock Capital stock is the total amount of physical capital that a company has at its disposal. That means it includes all the tangible assets that a company owns, such as buildings, machinery, equipment, vehicles, and inventory. It does not include intangible assets such as patents, copyrights, […]
Read moreCapitalism
Definition of Capitalism Capitalism is an economic system based on private ownership of the means of production and the creation of goods and services for profit. That means it is a system in which the production and distribution of goods and services are determined by the free market, with little […]
Read moreAccrued Revenue
Definition of Accrued Revenue Accrued revenue is income that has been earned but not yet received. That means it is revenue that has been earned but not yet invoiced or collected. It is also known as accrued income or accrued earnings. Example To illustrate this concept, let’s look at a […]
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