PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

<p style="text-align: justify;"><span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Capital</span> which is tied up in the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">company</span> permanently like <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">share</span> capital - as opposed to capital which is there temporarily - like loan capital from the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">bank</span>. Loan capital must receive its <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">interest</span> payments whether or not the company makes a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">profit</span>, but share capital does not need to be paid a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">dividend</span> unless the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">directors</span> think that the company can afford it.</p>