capital structure



Framework of different types of financing employed by a firm to acquire resources necessary for its operations and growth. Commonly, it comprises of stockholders' investments (equity capital) and long-term loans (loan capital), but, unlike financial structure, does not include short-term loans (such as overdraft) and liabilities (such as trade credit). Also called capitalization structure.

Use capital structure in a sentence

  • You need to know what the full capital structure of your company looks like if you want to proceed accordingly.

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  • The capital structure of the place was really good and it allowed me to learn a lot about their functioning.

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  • The capital structure of the project that was composed of a variety of investments and securities was generating considerable profit.

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