Capital Commitment

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Dictionary Says

Definition of 'Capital Commitment'

Future capital expenditures that a company has committed to spend on long-term assets over a period of time. Capital commitment also refers to securities inventory carried by a market maker. The term may also refer to investments in blind pool funds by venture capital investors, which they contribute over time when requested to do so by the fund manager.
Investopedia Says

Investopedia explains 'Capital Commitment'

A company has to exercise the utmost care in structuring its capital commitments, since an inordinately high amount will put undue strain on its finances. It would need to ensure that operating cash flow is sufficient to meet capital expenditures, and if it is not, make arrangements to ensure that it can raise the additional funds on the capital markets. Capital commitments are generally the highest for companies in capital-intensive industries such as power generation.

 
Search results for

'Capital Commitment'

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    http://www.investopedia.com/articles/optioninvestor/08/mini-futures.asp
    These contracts provide access to commodities without a huge capital commitment. ...

  • Oil Sands Pumping Again

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    ... If similar reserve numbers are forthcoming from the Terre de Grace property,
    BP capital commitment is likely to be on a similar scale. ...

  • CFA Level 1 Study Guide - Alternative Investments - Venture ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/venture-capital-investment-characteristics-npv-net-present-value.asp
    ... Real Estate; Statistics; Stocks; Taxes; Venture Capital. ... 4.6 The Demand and Supply
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  • The Best Capital Allocator In Consumer Goods

    http://stocks.investopedia.com/stock-analysis/2010/The-Best-Capital-Allocator-In-Consumer-Goods-SMG-CLX-PG-PM-JNJ0115.aspx
    ... capital isn't easy. Most corporate boards in recent years have chosen share repurchases
    over dividends because they aren't locked into a cash commitment. ...

  • Georges Doriot And The Birth Of Venture Capital

    http://www.investopedia.com/articles/financialcareers/10/georges-doriot-venture-capital.asp
    ... Doriot believed profit was a byproduct of hard work and commitment, but not ... overall
    success encouraged other investors to enter the venture capital field using ...

  • The Greatest Investors: Philip Fisher | Investopedia

    http://www.investopedia.com/university/greatest/philipfisher.asp
    ... Important business characteristics would include a growth orientation, high profit
    margins, high return on capital, a commitment to research and development ...

  • CFA Level 1 Study Guide - Liabilities - Capital And Operating ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/capital-operating-leases.asp
    ... Real Estate; Statistics; Stocks; Taxes; Venture Capital. ... 4.6 The Demand and Supply
    of Financial and Physical Capital; 4.7 Economic Rent and Opportunity Cost; ...

  • Banks Turn To Investors For Handout

    http://stocks.investopedia.com/stock-analysis/2009/Banks-Turn-To-Investors-For-Handout-HBAN-SNV-ZION0923.aspx
    ... an equity distribution, where its has an open-end commitment to sell ... has stirred
    the interest of investors, and means another large capital injection into the ...

  • 10 Tips To Clear Your Portfolio's Dead Weight

    http://www.investopedia.com/articles/trading/08/portfolio-cleaning-tips.asp
    ... Build capital with a regular savings program. Building wealth is not just about
    making big profits. It is also about making a big commitment to saving part of ...

  • Quit Your Job To Trade Stocks?

    http://www.investopedia.com/articles/trading/09/how-to-trade-for-a-living.asp
    ... personal capital is required, and in other cases a small amount of capital will
    be required to get you started, in order to verify your commitment to trading. ...

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