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Under a cap-and-trade system,a firm that emits more than its share of carbon can buy allowances from a firm that emits less than its share.
Initial Investment
The amount of money used to start a project, purchase an asset, or initiate operations in a new business.
Book Value
The value of an asset according to its balance sheet account balance, taking into consideration the cost of the asset minus depreciation.
Total Net Assets
The sum of all assets minus the liabilities, representing the owner's equity in a company.
Total Capital
The sum of a company's debt and equity, representing the total funds available for its operations and growth.
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