Capital Note
Usually middle C. You know, a musical note, but in all-caps. Like singing the "Do, a deer, a female deer" song...but very loudly. Sam Kinison does Julie Andrews. (And if you don't know who either of those people are, just look them up...we're here to teach.)
Financially speaking, a capital note is a particular kind of corporate debt. It represents an unsecured, short-term note (note here meaning a kind of debt instrument). Being unsecured, the note isn't backed by any assets. It's like your credit card debt. If you hold the note and the company that issued it defaults, there's not much you can do. This fact makes it more risky...but it should lead to a higher interest payment as well.
Also, some capital notes have the option to convert to common stock at a certain time before maturity.
Related or Semi-related Video
Finance: What are Junior and Senior Debt...7 Views
Finance a la shmoop what are senior and junior debt? or like what's the
difference between them well what are they they're debt in a bankruptcy senior
debt collects what they're owed ahead of junior debt shockingly yep laws of the [Debt transferring to senior debt]
jungle remember the debt stack? vendors to the
company collect first then employees then the IRS of course because while
they always have their hands up in your bidness [Woman flips over stack of papers on womans desk]
then come senior bonds then come junior then come unsecured bonds also known as
debentures then subordinated debenture like debentures below debentures and
there are all kinds of granular things in the bonds above we're very sorry if
one day in your career you have to care about all of this okay then moving down [Man discussing debt stack]
the stack then there's preferred stock which collects after the most
subordinated debentures collect generally and then finally there's
common stock and well really finally then there's death and well in taxes [Uncle Sam appears at grave stone]
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