Capital outflow


 

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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.



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Capital requirements

Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.


Long term capital gain

Long term capital gain

A profit on the sale of a security or mutual fund share that has been held for more than one year.


Working capital ratio

Working capital ratio

Working capital expressed as a percentage of sales.


Overcapitalization

Overcapitalization

Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.


Short term capital gain

Short term capital gain

A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income.


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