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Capital account |
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Capital account1. (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 accountNet result of public and private international investment and lending activities.Capital account Similar MatchesCapital depreciationCapital depreciationSee depreciation. Dedicated capitalDedicated capitalTotal par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value. Loan capitalLoan capitalThat part of a company's capital structure which is raised by loans. Such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. At the end of the period the capital is repaid. This contrasts with share capital where shareholders are entitled to a proportion of the company's profits usually by way of dividends. Venture capital limited partnershipVenture capital limited partnershipA partnership between a startup company and a brokerage firm or entrepreneurial company that provides capital for the new business in return for stock in the company and a share of the profits. Capital gainCapital gainThe amount chargeable to capital gains tax (CGT) from gains made on the disposal of an asset. In the case of stocks and shares, your gain is the difference between the proceeds of selling the shares and the amount you paid for them adjusted for indexationIn calculating the acquisition cost, you can include including broker commissions and stamp duty. Depending on when you bought the shares, the base cost can be increased through the indexation allowance - a good thing from a tax point of view because the higher your acquisition cost, the lower your chargeable gain.In calculating the disposal proceeds, you can deduct commissions and other charges incurred in the process of selling.Whether you have to pay Capital Gains Tax on the chargeable gain will depend on whether you have already used up your annual exemption (the amount of gains you can make in any one year without paying CGT), and on the level of your other gains or losses in the tax year.Taper relief, which reduces the rate of tax you pay on gains, may also be available, depending on how long you have held the shares at the time you sell them. Further SuggestionsCapital asset pricing model (CAPM)Long-term capital Capital asset Marginal efficiency of capital Capital movement capital structure capital gains tax Long Term Capital Gain Capital intensive authorised share capital Capital Capitalization table Efficient capital market Capital account surplus Capital good Capital appreciation Capital loss Morgan Stanley Capital International Emerging Markets Global Index Human capital Morgan Stanley Capital International Europe, Australia, Far East Index Capital loss Capital market efficiency Financial capital Overcapitalization Capital intensive |
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