Capital growth

 

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Capital growth

Where 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 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.



Similar Matches

Human capital

Human capital

1. The stock of knowledge and skill, embodied in an individual as a result of education, training, and experience, that makes them more productive. 2. The stock of knowledge and skill embodied in the population of an economy.


Capital rationing

Capital rationing

Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost of capital, or by setting a maximum on the entire capital budget or parts of it.


Capitalization method

Capitalization method

A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization.


Capital Assets

Capital Assets

Assets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines.


Capitalisation

Capitalisation

The injection of capital into a company.The process by which a company converts its cash reserves into new shares and issues them to existing shareholders on a pro rata basis. Also known as a Scrip Issue, or Bonus Issue. Note that since the effect of a capitalisation issue is to increase the number of shares in the company, the market price of the shares will typically fall to reflect the dilution.


Further Suggestions

Physical capital
Real capital
Capital turnover
Capital flight
Capital market
Long-term capital
Capital gains
venture capital trust
Capital surplus
Short-term capital flow
Small capitalization (small cap) fund
capital allowance
capital gain
Capital
Capital flight
Total capitalization
return on capital employed
Capital market line (CML)
Capitalized interest
Capital account balance
Perfectly mobile capital
Negative working capital
Contributed capital
capital employed
Capital Fulcrum Point


 
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