Capital Base

Filed Under »
Dictionary Says

Definition of 'Capital Base'

1. The capital acquired during an IPO, or the additional offerings of a company, plus any retained earnings.

2. An initial investment plus subsequent investments made by an investor into their portfolio.
Investopedia Says

Investopedia explains 'Capital Base'

1. This is essentially the money contributed by the shareholders who first purchased shares in the company plus retained earnings.

2. Capital base is important because it provides a benchmark when measuring returns. Without it, investors and companies would be unaware of how they are doing relative to their investments.
Search results for

'Capital Base'

  • EVA: Calculating Invested Capital | Investopedia

    http://www.investopedia.com/university/EVA/EVA3.asp
    ... economic profit calculation. First, if Disney had a LIFO reserve, we would
    add that to the invested capital base. Second, if research ...

  • Is Your Bank On Its Way Down?

    http://www.investopedia.com/articles/fundamental-analysis/09/tier-1-capital-ratio.asp
    ... According to Basel, "the sum of Tier 1 and Tier 2 elements will be eligible for
    inclusion in the capital base," though certain restrictions apply on how much ...

  • Getting The Real Earnings

    http://www.investopedia.com/articles/fundamental/04/060204.asp
    ... By taking into consideration the size of a company's increased capital base, changes
    in EPS provide a far better view of a company's fundamentals and changing ...

  • More Pain Ahead For European Banks

    http://stocks.investopedia.com/stock-analysis/2011/More-Pain-Ahead-For-European-Banks-RY-PNC-SCGLY-CRZBY-DB0819.aspx
    ... Using this ratio, a massive capital base of $195.1 billion is needed to
    sufficiently cover potential losses. Of more concern is ...

  • Can SunTrust Be Trusted?

    http://stocks.investopedia.com/stock-analysis/2009/Can-SunTrust-Be-Trusted-STI-JPM-PNC0910.aspx
    ... Regional bank SunTrust (NYSE:STI) has seen its capital base eroded by
    a down economy and historic losses in consumer loans. The ...

  • CFA Level 1 Study Guide - Portfolio Management - Return Objectives ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/return-objectives-investment-constraints.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; ...

  • Profitability Indicator Ratios: Return On Capital Employed ...

    http://www.investopedia.com/university/ratios/profitability-indicator/ratio5.asp
    ... This measure narrows the focus to gain a better understanding of a company's
    ability to generate returns from its available capital base. ...

  • The Banking System: Commercial Banking - Key Ratios/Factors ...

    http://www.investopedia.com/university/banking-system/banking-system9.asp
    ... Above-average loan growth can mean that the bank has targeted attractive new markets,
    or has a low-cost capital base that allows it to charge less for its loans ...

  • Why do share prices fall after a company has a secondary offering?

    http://www.investopedia.com/ask/answers/07/secondary_offering.asp
    ... An increase in a company's capital base dilutes the company's earnings because
    they are spread among a greater number of shareholders. ...

  • Debt Ratios: Capitalization Ratio | Investopedia

    http://www.investopedia.com/university/ratios/debt/ratio4.asp
    ... is one of the more meaningful debt ratios because it focuses on the relationship
    of debt liabilities as a component of a company's total capital base, which is ...

Related Articles

Partner Links