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1 The act of providing capital for a company or other organization.

2 The structure of the capital of a company or other organization, i.e. the extent to which its capital is divided into share or loan capital and the extent to which share capital is divided into ordinary and preference shares. See also thin capitalization.

3 The conversion of the reserves of a company into capital by means of a scrip issue.

4 The accounting practice of treating capital expenditure as a fixed asset on the balance sheet rather than charging it against profits when it occurs.

Subjects: Financial Institutions and Services — Accounting.

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