Capital growthWhere the original amount you invest increases over a period of time. Generally this is achieved by interest or dividends being added back to an account for reinvestment.
Capital growthIn 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.
1. An owner (or sometimes only a manager) of capital. 2. Associated or identified with capitalism.
Capitalization Weighted IndexCapitalization Weighted Index
A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heavist weighting in the index. See also Float, Divisor.
Working capital ratioWorking capital ratio
Working capital expressed as a percentage of sales.
Efficient capital marketEfficient capital market
A market in which new information is very quickly reflected accurately in share prices.
Capital employedCapital employed
The value of all the assets employed in a business, including equity and preference capital, fixed and current assets, and gross borrowings.The most common use of capital employed is in the calculation of 'Return on Capital Employed' which measures the operating profit of a company as a percentage of capital employed. In effect, ROCE is telling you how efficient a company is in squeezing profit out of capital. A company that gets £20m of profit out of £200m capital employed is doing much better than one that gets £20m of profit out of £800m of capital employed.
Further SuggestionsCapital appreciation
Incremental cost of capital
Long term capital gain
return on capital employed
Morgan Stanley Capital International Emerging Markets Global Index
Capital adequacy ratio
venture capital trust
Net working capital
split capital investment trust
Morgan Stanley Capital International Pacific Free index
Return to capital
issued share capital
Small capitalization (small cap) stocks