Capital Base
1. The capital acquired during an IPO, or the additional offerings of a company, plus any retained earnings.
2. An initial investment plus subsequent investments made by an investor into their portfolio. Investopedia Says:
1. This is essentially the money contributed by the shareholders who first purchased shares in the company plus retained earnings.
2. Capital base is important because it provides a benchmark when measuring returns. Without it, investors and companies would be unaware of how they are doing relative to their investments. Related Terms:
Capital
Retained Earnings
Return on Assets
ROE
ROI |