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English definition of “capital reserve”

capital reserve

noun [C, usually plural]
 
 
ACCOUNTING, FINANCE
an amount of money that a company or organization keeps in a special account for future needs: A lack of capital reserves and operating experience have made the casino project unattractive to lenders. The city has about $23 million in a capital reserve account.
(also undistributable reserve, also non-distributable reserve) the part of a company's profits, produced, for example, by an increase in the value of its assets, that it keeps as capital, and that cannot be given to shareholders as dividends
(Definition of capital reserve from the Cambridge Business English Dictionary © Cambridge University Press)
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