Capital account

 

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Capital account

1. (Current definition) Since sometime in the 1990s, "capital account" refers to a minor component of international transactions, involving unilateral transfers of ownership of property. The common definition, below, describes what is now called the financial account. 2. (Common definition) A country's international transactions arising from changes in holdings of real and financial capital assets (but not income on them, which is in the current account). Includes FDI, plus changes in private and official holdings of stocks, bonds, loans, bank accounts, and currencies. 3. (Bretton-Woods definition) Same as common definition except excluding official reserve transactions. This definition was used under the Bretton Woods System of pegged exchange rates, but is less meaningful under floating exchange rates.

Capital account

Net result of public and private international investment and lending activities.



Capital account

Similar Matches

Capital growth

Capital growth

In general terms, the increase in value of an asset.As far as shares are concerned, capital growth is an increase in share price compared to what you paid, and is one of the elements of what investors called 'total return', the other component being income through dividends.Research has shown that investing in shares over the last 50 years produced a better total return than investments in bonds or deposits, and capital growth has been a major part of that superior performance. There is certainly no guarantee that shares will continue to outperform other investments, but most observers believe that they will over the long term.


Capital stock

Capital stock

The total amount of physical capital that has been accumulated, usually in a country.


Capital good

Capital good

A good, such as a machine, that, once in place, becomes part of the capital stock.


Long-term capital

Long-term capital

In the capital account of the balance of payments, long-term capital movements include FDI and movements of financial capital with maturity of more than one year (including equities).


Incremental cost of capital

Incremental cost of capital

Average cost applicable to the issue of each additional unit of debt and equity.


Further Suggestions

Capital augmenting
capital adequacy
Capital shares
Capital rationing
Capitalization rate
Morgan Stanley Capital International World Index
capital expenditure
"Soft" capital rationing
Capital expenditures
Capital flight
Pecking order view (of capital structure)
Capital adequacy ratio
Capital abundant
capitalisation issue
Capital scarce
capital market theory
Capital market imperfection
Investment Company with Variable Capital
Small capitalization (small cap) stocks
Capitalization method
Net working capital
Capital gains distribution
Human capital
Capital
Capital account surplus


 
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