What Is Capital Control? Capital control represents any measure taken by a government, central bank, or other regulatory body to limit the flow of foreign capital in and out of the domestic economy. These controls include taxes, tariffs, legislation, volume restrictions, and market-based forces. Capital controls can affect many asset classes such as equities, bonds, and foreign exchange
2023 Tax Rates for Long-Term Capital Gains  Filing Status  0%  15%  20%  Single Up to $44,625 $44,626 to $492,300 Over $492,300  Head of household Up to $59,750 $59,751 to $523,050 Over $523,050  Married filing jointly and surviving spouse Up to $89,250 $89,251 to $553,850 Over $553,850  Married
What Is a Capital Account? The capital account, in international macroeconomics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports of goods, services, capital, and as transfer payments such as foreign
What Is Capital Accumulation? Capital accumulation refers to an increase in assets from investments or profits and is one of the building blocks of a capitalist economy. The goal is to increase the value of an initial investment as a return on investment, whether that be through appreciation, rent, capital gains, or interest. Key Takeaways
What Is Capital Addition? Capital addition is the cost involved for adding new assets or improving existing assets within a business, also called capital expenditures. Capital additions may take the form of adding new parts or features that are expected to increase the useful life of potential of an asset or may involve adding new
What Is Capital Adequacy Ratio – CAR? The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of a bank’s risk-weighted credit exposures. The capital adequacy ratio, also known as capital-to-risk weighted assets ratio (CRAR), is used to protect depositors and promote the stability and efficiency of financial
What Is Capital Appreciation? Capital appreciation is a rise in an investment’s market price. Capital appreciation is the difference between the purchase price and the selling price of an investment. If an investor buys a stock for $10 per share, for example, and the stock price rises to $12, the investor has earned $2 in
Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended for sale in the regular course of the business’s operation. This also makes it a
What Is Capital Budgeting? Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected. As part of capital budgeting, a company might
What Is a Capital Buffer? A capital buffer is mandatory capital that financial institutions are required to hold in addition to other minimum capital requirements. Regulations targeting the creation of adequate capital buffers are designed to reduce the procyclical nature of lending by promoting the creation of countercyclical buffers as set forth in the Basel
