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

Capital account

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 outflow

Capital outflow

A net flow of capital, real and/or financial, out of a country, in the form of reduced holdings of domestic assets by foreigners and/or increased purchases of foreign assets by domestic residents. Recorded as negative, or a debit, in the balance on capital account.


Capital movement

Capital movement

capital inflow and/or outflow.


Total capitalization

Total capitalization

The total long-term debt and all types of equity of a company that constitutes its capital structure.


Capital adequacy ratio

Capital adequacy ratio

The ratio of a bank's capital to its risk-weighted credit exposure. International standards recommend a minimum for this ratio, intended to permit banks to absorb losses without becoming insolvent, in order to protect depositors.


Further Suggestions

loan capital
Morgan Stanley Capital International (MSCI)
Capital good
Capital expenditure
Capital asset pricing model (CAPM)
Capital
Capital market line (CML)
Dedicated capital
Capital formation
Physical capital
share capital
Capital loss
Net working capital
Capital augmenting
Incremental cost of capital
Long term capital gain
Capital intensity
capitalisation issue
Core capital
Human capital
Capital market imperfection
Paid in capital
Capital-using
Capital market efficiency
Capital shares


 
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