Kapitalfestlegung

German

Etymology

Kapital (capital) +‎ Festlegung (determination/commitment)

Pronunciation

  • IPA(key): [kapiˈtaːlˌfɛstleːɡʊŋ]
  • Hyphenation: Ka‧pi‧tal‧fest‧le‧gung

Noun

Kapitalfestlegung f (genitive Kapitalfestlegung, plural Kapitalfestlegungen)

  1. (finance, economics) capital commitment, capital allocation (the decision to tie up financial resources in a specific investment or project for a certain period)
    Eine langfristige Kapitalfestlegung in Sachwerten kann als Schutz gegen Inflation dienen, schränkt jedoch die kurzfristige Handlungsfreiheit ein.
    A long-term capital commitment in tangible assets can serve as protection against inflation, but it limits short-term freedom of action.
    Vor jeder größeren Kapitalfestlegung muss eine umfassende Prüfung der Werthaltigkeit des Zielobjekts erfolgen.
    Before any major capital allocation, a comprehensive assessment of the intrinsic value of the target object must be carried out.

Declension

Synonyms

Antonyms

Hypernyms

  • Investitionsentscheidung (investment decision)
  • Finanzplanung (financial planning)

Coordinate terms

  • Anlagehorizont (the duration of the capital commitment)
  • Bestandshaltung (the operational result of capital commitment)
  • Kapitalumschlag (the speed at which the commitment is liquidated through sales)
  • Opportunitätskosten (the costs of not being able to use the capital elsewhere)
  • Sorgfaltspflicht (the duty to analyze before committing capital)
  • festlegen (to determine/commit)
  • Kapitalbedarfsplan (capital requirement plan)

References