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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

capital expenditure  

Definition 1.

Money spent to acquire or upgrade physical assets such as buildings and machinery. also called capital spending or capital expense.
 

Definition 2.

Spending on plant, equipment and the like. Capital expenses usually purchase things that last more than a year; these expenses are therefore capitalized on the balance sheet, and depreciated annually. Capital spending varies widely by industry. Power utilities, cable TV firms, heavy manufacturers and the like often have large capital expenditures. Securities firms and software companies, by contrast, depend more on human resources.
 
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