Capital Structure
/ˈkæpɪtl ˈstrʌktʃər/
Definitions
- (n.) The mix of debt and equity that a corporation uses to finance its operations and growth.
The company's capital structure includes both common stock and long-term bonds.
Forms
- capital structures
Related terms
Commentary
In drafting, clarity about the proportion and sources of capital helps assess financial stability and creditor risk.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.