Exchange Currency

capital rationing

Limiting a company's new investments, either by setting a cap on parts of the capital budget or by using a higher cost of capital when weighing the merits of potential investments. This might happen when a company has not enjoyed good returns from investments in the recent past. Capital rationing also could take place if a company has excess production capacity on hand.

Related information about capital rationing:
  1. Capital Rationing Definition | Investopedia
    The act of placing restrictions on the amount of new investments or projects undertaken by a company. This is accomplished by imposing a higher cost of capital ...
     
  2. What is Capital Rationing?
    Capital rationing is the acquisition of new investments based on factors like the performance of other capital investments and the...
     
  3. Capital Rationing - Financial Dictionary - The Free Dictionary
    Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget ...
     
  4. Capital Rationing
    Mar 11, 2010 ... Capital rationing is technique which is used with capital budgeting techniques. Capital rationing technique is used when company has limited ...
     
  5. What is capital rationing? definition and meaning
    Definition of capital rationing: Limiting a company's new investments, either by setting a cap on parts of the capital budget or by using a higher cost of capital ...
     
  6. How to Solve Conflicts Involving Capital Rationing | Chron.com
    Capital rationing is a method companies use to weigh different investment options. All firms have money set aside for new investments. If a firm is presented with ...
     
  7. What Is Capital Rationing? - Financial Web
    Capital rationing is a strategy used by organizations attempting to limit the costs of their own investments. Typically, a company engaging in capital rationing has ...
     
  8. Define Capital Rationing | eHow.com
    Define Capital Rationing. Capital rationing is a business decision to limit the amount available to spend on new investments or projects. The practice describes ...