Capital surplus is extra money a company has. This money is not from the normal business of the company. There are a few ways a company can get capital surplus: Selling stock for more than par value Companies can sell shares of their stock. Each share has a “par value”. This is the lowest price…

Capital structure is how a company pays for what it needs to run its business. It’s the mix of different kinds of borrowed money (debt) and ownership (equity) that a company has. Companies raise money from lenders and owners to buy things like buildings, equipment, and supplies. The money a company gets is listed on…

A convertible note is a type of investment startups use to raise money. It’s a loan that can change into part ownership in the company. Convertible notes are loans When a startup needs cash, it can ask investors for a convertible note. The investor gives the company money. The startup promises to pay the money…

A capital note is a special kind of bond. Banks and bank holding companies issue them. They have some unique features compared to regular corporate bonds. Capital notes can count toward a bank’s Tier 2 capital. This helps the bank meet rules about how much money it needs to have. The rules make sure banks…

Capital movement means money can go to different places to try to make more money. This could mean investing in other things, like stocks, bonds, real estate, or starting a business. It could also mean moving money to a different country. When it’s easy for money to move around without too many costs or rules…

A capital markets subsidiary is a company owned by an insurer, reinsurer, or commercial bank. This company handles complex deals related to raising money in capital markets. Capital markets are places where companies and governments raise money by selling stocks, bonds and other investments. The capital markets subsidiary specializes in the kinds of deals normally…

Capital markets are the places where people buy and sell investments. The main investments traded are stocks, bonds, and derivatives. There are two types of capital markets: primary markets and secondary markets. Primary Markets Primary markets are where new investments are sold for the first time. When a company wants to raise money, they can…

A capital loss happens when you sell something for less than what you paid for it. This thing you sell is called an asset. An asset can be stocks, bonds, property, or other investments. The difference between the price you paid and the price you sold it for is your capital loss. Let’s say you…

Capital investment is when a company spends money on assets. Assets are things that help a company make products or provide services. Examples of assets are: The company hopes that by buying these assets, it can earn more money in the future. This is because the assets let the company create and sell more products…

Capital inflow is when more money comes into a country than goes out. This makes the country richer. The money can come from other countries or from businesses. Why capital inflow happens Capital inflow happens for a few reasons: Foreign businesses invest in the country. They build factories and stores and hire workers. This brings…