Capital commitment

Capital commitment,

Definition of Capital commitment:

  1. A capital commitment is the projected capital expenditure a company commits to spending on long-term assets over a period of time.

  2. It also refers to the securities inventory carried by a market maker. The capital commitment may also refer to investments in blind pool funds by venture capital investors, which they contribute overtime when requested by the fund manager.

  3. Allocation of funds for a possible liability in the near future arising out of capital expenditure. Firms must disclose their capital and financial commitments in notes (footnotes) accompanying a balance sheet.

  4. A firm commitment to spend sums of money on capital assets or improvements; an undertaking or obligation to expend capital.

Meaning of Capital commitment & Capital commitment Definition