Dow will drop 50% as market replays 2008, 2000 and 1929. Crowd of people gather outside the New York Stock Exchange following the Crash of 1929. Itâs time to start the countdown to the crash of 2016. No, this is not a prediction of a minor correction. Plan on a 50% crash.
Capital requirement (also known as regulatory capital or capital adequacy) is the amount of capital a bank or other financial institution has to hold as required by its financial regulator.This is usually expressed as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets.These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent.his is usually expressed as a capital adequacy ratio of equity that must be held as a percentage of risk-weighted assets. These requirements are put into place to ensure that these institutions do not take on excess leverage and become insolvent.
When a capital budgeting decision is being made, it is important to keep in mind how the capital structure may be affected. Capital structure is a mix of a company's long-term debt, specific short-term debt, common equity and preferred equity.The capital structure represents how a firm finances its overall operations and growth by using different sources of funds.hort-term debt such as working capital requirements is also considered to be part of the capital structure. A company's proportion of short and long-term debt is considered when analyzing capital structure.