Financial Tutorial  
Discuss in our Free Forum

FINANCIAL DICTIONARY & GLOSSARY: CAP - CAS
All information are subject to terms of use

capital allowance - the amount of tax-free profit allowed to cover the cost of replacing fixed assets.

capital assets - see fixed assets.

capital formation or accumulation - spending money to increase the supply of capital goods rather than consumer goods.

capital gains tax - a tax on profits from the sale of assets.

capital goods or investment goods - goods that are used to make further goods; the goods that make up the industrial market (machines, tools, factories, etc.).

capital intensive - requiring a large amount of capital investment per employee.

capital market - the banks and financial institutions from which companies and governments can raise long term finance.

capital ratio - is between a bank's capital and reserves on the one hand, and its total assets (loans) on the other.

capital sum - a lump sum of money paid by an insurance company (after an accident, on retirement, etc.).

capital transfer tax - see inheritance tax.

capital turnover ratio - the ratio of annual sales to issued share-capital.

capitalism - economic system based on the private ownership of the means of production, distribution and exchange.

capitalization - the aggregate stock market price of all a company's ordinary shares or common stock.

capitalization issue - see bonus issue.

carrying cost - the cost of owning assets, which can be compared with the amount of interest that could be earned if the money was lent instead.

cartel - a group of producers or sellers who combine to avoid competition and increase profits by fixing prices and quantifies.

cash - money in the form of banknotes and coins.

cashcard - a plastic card issued by a bank to its customers to use in cash dispensers.

cash discount - a -price reduction offered for immediate cash payment.

cash dispenser - a computerized machine that allows bank customers to withdraw money, check their balance, etc., by using their cashcard and a private number, called a PIN number.

cash flow - a company's ability to generate cash.

PREVIOUS PAGE - NEXT PAGE