capital rationing

Fin
the restriction of new investment by a company

The ultimate business dictionary. 2015.

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  • Capital rationing — Placing one or more limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on parts of, and/or the entirety of, the capital budget. The New York Times Financial Glossary * *… …   Financial and business terms

  • capital rationing — Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it. Bloomberg Financial Dictionary * * * capital rationing ˌcapital… …   Financial and business terms

  • capital rationing — The situation that arises when managers have insufficient money to invest in all projects with a positive net present value. The term soft capital rationing is used of situations in which a company sets its own limits on the amount of money… …   Accounting dictionary

  • capital rationing — The situation that arises when managers have insufficient money to invest in all projects with a positive net present value The term soft capital rationing is used of situations in which a company sets its own limits on the amount of money… …   Big dictionary of business and management

  • Capital Rationing — The act of placing restrictions on the amount of new investments or projects undertaken by a company. This is accomplished by imposing a higher cost of capital for investment consideration or by setting a ceiling on the specific sections of the… …   Investment dictionary

  • capital rationing — decisions concerning allocation of limited financial resources at the company s disposal …   English contemporary dictionary

  • Hard capital rationing — Capital rationing that under no circumstances can be violated. The New York Times Financial Glossary …   Financial and business terms

  • Soft Capital Rationing — Capital rationing that under certain circumstances can be violated or even viewed as made up of targets rather than absolute constraints. The New York Times Financial Glossary …   Financial and business terms

  • hard capital rationing — A capital budget that under no circumstances can be violated. Bloomberg Financial Dictionary …   Financial and business terms

  • soft capital rationing — Constraints on spending that under certain circumstances can be violated or even viewed as constituting targets rather than absolute limits. Bloomberg Financial Dictionary …   Financial and business terms

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