capital reserve Meaning in the Cambridge English Dictionary

Meaning of “capital reserve” in the English Dictionary

"capital reserve" in Business English

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capital reservenoun [C, usually plural]

an ​amount of ​money that a ​company or ​organizationkeeps in a ​specialaccount for future ​needs: A ​lack of ​capitalreserves and ​operatingexperience have made the ​casinoproject unattractive to ​lenders. The city has about $23 million in a capitalreserveaccount.
(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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