What Is Capital Allocation? Capital allocation is about where and how a corporation’s chief executive officer (CEO) decides to spend the money that the company has earned. Capital allocation means distributing and investing a company’s financial resources in ways that will increase its efficiency, and maximize its profits. A firm’s management seeks to allocate its
What Is a Capital Blockade? A capital blockade is an economic sanction that limits or prevents investment capital from flowing offshore from a country that may use it for possibly questionable purposes. A capital blockade may be combined with freezing foreign bank accounts that belong to the target country’s citizens to add pressure. Key Takeaways
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
