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Capital growth |
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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.Similar MatchesPaid in capitalPaid in capitalCapital subscribed by shareholders for a company's stock or shares. In the UK, known as paid up capital. Capital flightCapital flightThe transfer of capital abroad in response to fears of political risk. Short-term capital flowShort-term capital flowA capital flow that is short-term; of interest because such capital flows are likely to be very liquid and therefore easily reversed and sources of instability in exchange markets. Capital transfer taxCapital transfer taxA UK tax on gifts made by an individual, whether made during their life or after death. Replaced by inheritance tax in 1986. Pie model of capital structurePie model of capital structureA model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets. Further SuggestionsLong-term capitalmarket capitalisation split capital investment trust Capital scarce Capital depreciation capitalisation issue Capital loss capital market theory Morgan Stanley Capital International Pacific Free index Venture capital limited partnership capital movement Capital investment authorised share capital return on capital employed Net working capital Capital asset pricing model (CAPM) Capital Builder Account (CBA) Capital gain Short term capital gain Capital account surplus Perfect capital mobility venture capital trust working capital Capital intensive Small capitalization (small cap) fund |
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