Investing Glossary

8 terms
  • Capital

    Capital is any financial asset or the value of an asset.
  • Capital Gain

    A capital gain is any increase in value of an asset (such as stocks or real estate) that exceeds the purchase price. A capital gain is unrealized until the asset is sold.
  • Capital Gains Taxes

    A capital gains tax is a tax applied to realized capital gains upon the sale of an asset, such as stocks or real estate.
  • Capitalization (Cap) Rate

    The capitalization or cap rate measures a property’s yield in a one-year time frame, making it easy to compare one property’s cash flow to another on an equal basis – without taking into account any debt on the asset.
  • Cash-on-Cash Return

    Cash-on-cash return is one of the most widely used metrics in commercial real estate. As the name implies, this metric is calculated by dividing annual before tax cash-flow by the total cash invested in a project.
  • Census Tract

    Census tracts are typically small subdivisions of communities that are delineated for the purposes of the US Census.
  • Common Equity

    Common Equity means that investors have one-to-one (or equal) participation in each dollar invested and any potential profits or losses.
  • Cost Basis

    The cost basis of an investment is an investor’s initial stake in an investment, which is typically the initial price they pay to acquire that investment.