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November 18, 2019

Definition of Capital in Finance

Capital is a vague term which can refer to one of two things:Factories, machinery, equipment etc. owned by a companyThe value of financial assets such as cash, short-term securities etc.In an economic...

November 18, 2019

Definition of Collateral

Collateral is any asset which is used as backing for debt. In the event of a default on the debt, the collateral is seized to cover the losses. The most common example of collateral is in a mortgage, ...