Contingent Capital

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Definition: Contingent Capital

Contingent Capital
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Full Definition of Contingent Capital

An off-balance-sheet arrangement by which a company can ensure that a certain amount of funding is available when a pre-arranged trigger event, such as a natural disaster or the fulfillment of a raw materials price threshold, has been reached. Contingent capital arrangements are used to compensate for unexpected events or changes in expense amounts.

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https://payrollheaven.com/define/contingent-capital/
Modern Language Association (MLA):
Contingent Capital. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/contingent-capital/.
Chicago Manual of Style (CMS):
Contingent Capital. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/contingent-capital/ (accessed: April 23, 2024).
American Psychological Association (APA):
Contingent Capital. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/contingent-capital/

Definition Sources

Definitions for Contingent Capital are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.