Definition of Capital in Legal Terms

Many investments are illiquid, that is, they cannot be easily converted into cash to meet immediate needs. The Canadian Dictionary of Social Sciences [1] gives the following meaning of capital: an accumulation of goods or wealth used for the production of other goods and services and not for direct or personal use. If you only play games on your computer, the computer cannot be considered a capital. However, if it is used to create reports or charts that are then sold, the computer can be considered capital. Capital is at the heart of a capitalist economic system. See: CAPITALISM in this legal dictionary and in the World Law Encyclopedia. [Latin capitalis, de caput head, la vie d`une personne (telle que confisquée)] 1 a: passible de la peine de mort [ murder] b: execution involving [un cas] 2 medieval Latin capitalis chief, principal, from the Latin caput head: as the siège of government [the city] 3: from or in relation to capital ;in particular: from or in relation to capital assets [an account] n 1: Accumulated assets (in the form of money) that are invested or available for investment: like: Goods (as equipment) used to produce other goods B: Property (as shares) used to create income, see also Stock capital The word capital capital has a number of meanings depending on the context. Other private companies are responsible for assessing their own capital thresholds, fixed assets and capital requirements for business investments. Most of the analysis of companies` financial capital is done through an accurate analysis of the balance sheet. Like individuals, businesses must have an active credit history to receive debt capital. The loan capital requires a regular repayment with interest.

Interest rates vary depending on the type of capital received and the borrower`s credit history. Construction capital: The initial capital of a new company, usually paid-up, that involves risk but potentially offers above-average profits, also known as venture capital. At its core, capital is money. However, for financial and commercial purposes, capital is generally considered from the perspective of current operations and future investments. A company`s balance sheet provides a metric analysis of a capital structure divided between assets, liabilities and equity. The mixture defines the structure. Issuing bonds is a popular way for companies to raise debt, especially when prevailing interest rates are low, making borrowing cheaper. In 2020, for example, corporate bond issuance by U.S. companies rose 70 percent year-over-year, according to Moody`s Analytics.

Average corporate bond yields hit a multi-year low of about 2.3% at the time. 1) n. from Latin for caput, which means «head», the real estate of a company (especially companies or partnerships) or a natural person, including actual funds, equipment and things that differ from stocks in trade, inventory, payroll, maintenance and services. (2) adj. in connection with the core assets or activities of a corporation or individual, such as the capital account, capital assets, capital expenditures and capital gains or losses. 3) n. an amount of money that a person owns, as in «How much capital do you need to invest in this investment?» as opposed to the amount that needs to be financed. Working capital measures a company`s short-term liquidity. Specifically, it represents its ability to cover its debts, liabilities and other obligations due within one year. Capital is usually money or money that is held or raised for expenses. In a broader sense, the term can be expanded to include all assets of a business that have monetary value, such as equipment, real estate, and inventory. But when it comes to budgeting, capital is cash flow.

Estimated capital: the total nominal value or declared value of non-parental issues of outstanding share capital, also known as legal capital A company`s working capital is its liquid capital available to meet daily obligations. It is calculated by the following two ratings: Main entry: Law Enforcement in the Legal Dictionary. This section contains a partial definition of capital in the context of law enforcement. From the point of view of economists, capital is the key to the functioning of any entity, whether it is a family, a small business, a large company or an entire economy. Fixed assets are generally a broader term. The capital assets of an individual or business may include real estate, cars, investments (long-term or short-term) and other valuable assets. A company may also have capital investments, including expensive machinery, inventory, storage space, office equipment, and patents held by the company. As a general rule, enterprise capital and financial capital are valued from the point of view of the capital structure of a company. In the United States, banks are required to hold a minimum amount of capital as a risk mitigation requirement (sometimes referred to as economic capital), as required by central banks and banking regulations. Equity can take many forms. As a rule, a distinction is made between private equity, public risk capital and real estate capital.

Debt capital: Capital raised by borrowing (e.g., by issuing bonds or obtaining loans). In general, capital is an essential element in the day-to-day management of a business and the financing of its future growth. Working capital can come from the company`s business activities or be raised by borrowing or equity. When it comes to budgeting, companies of all types typically focus on three types of working capital: working capital, equity, and debt. A company in the financial sector identifies commercial capital as the fourth component. An entity that aggregates its NPV would include each element of the entity as well as all of its financial assets (less its liabilities). But an accountant managing the company`s daily budget would only consider its cash flow as capital.