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Term
Main definition
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Under U.S. income tax law, this term refers to a corporation that would be taxed in accordance with Subchapter C of the Internal Revenue Code, which applies to any corporation that has not properly elected to be an S corporation (taxed pursuant to Subchapter S of the Internal Revenue Code) as of the relevant taxable year.
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When a bond issuer exercises the right to retire the bonds (redeeming them before maturity at a specific price), this term refers to the date upon which the bonds may be called by the bond issuer for retirement.
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The right for a specified time period to buy a security usually at a specified price. See also Option.
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The premium amount measured in terms of percentage in excess of the par value of the bond that a bond issuer must pay in order to call bond issue for redemption prior to maturity.
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A bond issuer's ability to exercise a right to retire the bonds (redeeming them at a specific price).
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The announcement by the manager of a venture capital, private equity or other fund that the limited partners would need to contribute some or all of the capital that such limited partners had committed to contribute.
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The total or maximum amount of capital funding committed to a limited liability company, limited partnership or any venture capital or private equity fund, by its members or limited partners.
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Earnings that constitute taxable income for purposes of the United States Internal Revenue Code, as amended, incident to a sale or exchange of property where the property is classified as a capital asset (ie., either held for investment or used in a trade or business, and excluding assets sold by a dealer of that kind of asset from its inventory). Earnings or losses for income tax purposes are measured in terms of the difference between the seller's net proceeds and the seller's tax basis in the property.
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The difficulty faced by some entrepreneurs in trying to raise between $2 million and $5 million. Friends, family and angel investors are typically good sources for financing rounds of less than $2 million, while many venture capital funds have become so large that they are only interested in investing amounts greater than $5 million.
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The units of ownership in a corporation as authorized in the corporation's charter, called by names such as common stock and preferred stock and usually evidenced by stock certificates all called in a generalizing manner the capital stock.
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The "cap rate" is the ratio of a real estate property's net operating income to its current market value. Capitalization rates can vary from year to year as the level of income generated by the property fluctuates.
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A table showing the capitalization of a company, which typically includes all classes of securities issued by the company similar to the presentation in the capital section of the company's balance sheet.
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When a maximum limit is placed it is called capping an amount and the limit itself is often called a cap.
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Capped-Participating Preferred Stock
A kind of participating preferred stock.
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Regarding a venture capital (or private equity) fund organized as a limited partnership, the carried interest would be the general partner's share of the capital gains generated through the fund's performance (via liquidity events with respect to portfolio investments). Carried interest does not refer to the management fee charged by the venture capital or private equity general partner.
