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Capacity
CapacityCredit grantors' measurement of a person's ability to repay loans. RELATED TERMS-------------------------------------- Credit Money loaned. SIMILAR TERMS-------------------------------------- PREVIOUS AND NEXT TERMS-------------------------------------- Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. Called away 1) Convertible: Redeemed before maturity. 2) Option: Call or put option exercised against the stockholder. 3) Sale: Delivery required on a short sale. Canadian agencies Agency banks established by Canadian Banks in the U.S. Cancel To void an order to buy or sell from the floor, or the trader/salesperson's scope. Cap An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). Capacity Capital 1) Assets used for the production of profits and wealth. 2) Owner's equity in a business. Capital account Net result of public and private international investment and lending activities. Capital allocation decision Allocation of invested funds between risk-free assets and the risky portfolio. Capital asset A long-term asset, such as land or a building, not purchased or sold in the normal course of business. Capital asset pricing model (CAPM) An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. We thank you for using the Financial Dictionary to search for Capacity. If you have a better definition for Capacity than the one presented here, please let us know by making use of the suggest a term option. This definition of Capacity may be disputed by other professionals. Our attempt is to provide easy definitions on Capacity and any other medical topic for the public at large.
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