Capital Purchase Program

Definition:

A preferred stock and equity warrant purchase program created by US Treasury in October 2008 to stabilize the financial institutions of all sizes throughout U.S. CPP is a part of Troubled Assets Relief Program (TARP).$250 billion was allocated for CPP out of $700 billion TARP fund.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Deferred tax expense

A non-cash expense that provides a source of free cash flow. Amount allocated during the period to cover tax liabilities that have not yet been paid.

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