Renaissance for LEADERS

Peak Performance Resources for Leaders by Leaders

glossary

Capital

1. Material wealth in the form of money or property. 2. Wealth in the form of cash or property that can be used to earn income. 3. The net worth of a business, which is the amount by which its assets are greater than its liabilities. 4. What you own free and clear. 5. Money that can be used to produce further wealth. 6. Advantage derived from or useful in a particular situation. 7. Any resource or resources that can be used to generate economic wealth. 8. The capitalist class considered as a group. 9. The assets of a business that remain after its debts and other liabilities are paid or deducted.

Capital Gain

1. The amount by which proceeds from the sale of a capital asset exceed the cost basis. 2. In real estate and investments, the difference between the purchase price and the sale price when the sale price is more. When an investor buys an asset and sells it for a higher price, they incur a capital gain. In the United States, Capital Gains are taxed at a lower rate than other income if the asset is held for longer than one year. An investor may use capital losses to offset gains to minimize their taxes.

Capitalism

An economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit.

Capitalize

1. To take advantage of. 2. To use as or convert into capital. 3. To supply with capital or investment funds. 4. To authorize the issue of a certain amount of stock. 5. To convert debt into equity. 6. To calculate the current value of future cash flows. 7. To include expenditures in business accounts as assets instead of expenses.

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