Capital Commitment

Capital Commitment - Capital commitment is an inventory of stocks that market makers carry that represent a greater risk to the market maker, since the value of the stocks the market maker carries can change creating a greater risk for loss. Sometimes decisions made by companies to invest a certain amount for long-term investments, or assets, over a specific period of time, is also known to be a capital investment, which generally adds to the company's liquidity, and provides them greater protection against sudden changes in the company's profitability and shares.