Capital Structure

Capital Structure - The capital structure pertains to the long-term financing, on a permanent basis, of a corporation or company, including common stock, preferred stock, retained earnings, and long-term debt load. This is much different from the financial structure of a corporation or company, as the financial structure of a corporation or company includes short-term accounts payable and debts. Capital structure normally only pertains to things that are directly going to affect the owner's equity calculations on a long-term basis, such as on-going contracts, loans, building mortgages, and other financial debts or obligations of a specific company or corporation.