Glossary

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Capital
Capital is simply another way to refer to money. When you purchase a home, you are investing capital. Selling your home means that you are liquidating your capital. Asking for a capital infusion simply means that you are looking for a loan. Any profit that you make from your investments is called a capital gain. Any loss on your investment is referred to as a capital loss. Withdrawing capital is another way of saying that you are pulling out of a potential investment opportunity. Capital improvements to your home are improvements that raise the value of your property. A new kitchen, siding or roof could all be considered as capital improvements. You are hoping that these capital expenditures will result in an increased profit when you sell or charge a higher rental price for your property.