Archives: Terms

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Definition of Capital Reserves Capital reserves are funds or assets set aside by a company out of its profits or other surpluses to strengthen its financial position, fund future expansion, or meet unexpected liabilities. These reserves are not generally distributable to shareholders as dividends. They are, instead, retained within the […]

Definition of Capital Outflow Capital outflow refers to the movement of financial assets and capital from one nation to another. This phenomenon occurs when investors move their investments overseas, seeking higher returns or safer havens for their capital. Capital outflows can manifest through various channels, including direct investments in foreign […]

Definition of Capital Movements Capital movements refer to the flow of money for the purpose of investment, trade, or business production between countries. These movements can either be in the form of foreign direct investment (FDI), portfolio investment, or other investments including loans and banking flows. Capital movements are instrumental […]

Definition of Capital Mobility Capital mobility refers to the ease with which capital can move from one country to another. In a world of high capital mobility, investors can quickly and easily invest in markets outside their own country. This concept is critical in the global financial system, as it […]

Definition of Capital Market The capital market is a financial market where buyers and sellers engage in the trade of financial securities such as bonds, stocks, and other long-term investments. These markets are crucial for the efficient allocation of capital and resources in an economy, as they provide a platform […]

Definition of Capital Loss A capital loss occurs when the sale price of an asset is less than its purchase price. It essentially represents a decrease in the value of an investment, encompassing stocks, bonds, property, or other investments. This concept is fundamental in the realms of finance and investing, […]

Definition of Capital Levy A capital levy is a one-time tax imposed on the capital assets of individuals or organizations, based on their value at a certain point in time. Unlike income taxes that are charged on the annual earnings of an individual or a corporation, a capital levy is […]

Definition of Capital Issues Capital issues refer to the challenges and considerations that businesses face related to their capital structure and financing strategies. This encompasses the decision-making process regarding the mix of debt and equity financing, dividend policies, reinvestment strategies, and the management of capital to optimize a firm’s value […]

Definition of Capital Inflow Capital inflow refers to the movement of funds into a country or region for the purpose of investment, either in the form of direct investment, portfolio investment, or other financial instruments. This influx of capital can stem from foreign entities investing in domestic assets, such as […]