Glossary

A capital asset pricing model (CAPM) is an asset valuation model that describes the relationship between expected risk and expected return for marketable assets.

Capital attribution is the assignment of enterprise-level capital to the various business segments (e.g., lines of business, regions, projects) that make up the enterprise in recognition of the relative risk of each segment for purposes of measuring segment performance on a risk-adjusted basis.

Capital at risk is capital that is available to support the retention of risk by a self-insurer or underwriter of risk.

Capital markets are the institutions in which financial instruments such as stocks and bonds that mature in more than 1 year are created and traded.

Capital stock refers to the ownership of a corporation as expressed in individually or jointly held shares of stock.

A capital stock company is an insurance company owned by stockholders rather than by its policyholders.

Capital structure is the determination of the optimal mix of capital by type (i.e., debt, common equity, preferred equity) given the risk profile and performance objectives of the enterprise.

Capital sum is the maximum amount payable in one sum in the event of accidental death or dismemberment.

Capitated fee is a method of compensating medical providers based on the number of patients treated rather than the amount of service provided.

The captain of the ship doctrine is often used in operating room situations whereby a physician can be held liable for the actions of subordinates (i.e., nurses), based on the doctor's functioning as "the captain of the ship," because the physician controls and directs the actions of those in assistance.