capital rationing

capital rationing definition - finance
The action that a corporation takes when capital is either difficult or expensive to obtain and many projects must compete for the limited capital available. Companies ration capital when companies increase the minimum return required to fund a new project or investment.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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