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
What Is Capital Commitment? A capital commitment is the projected capital expenditure a company commits to spending on long-term assets over a period of time. It also refers to the securities inventory carried by a market maker. The capital commitment may also refer to investments in blind pool funds by venture capital investors, which they
Apple trees are best pruned in winter when they are dormant. Young apple trees can grow narrow and erect or open and spreading. At maturity, the apple tree will be spreading. Prune young narrow and erect apple trees by cutting branches just above buds which are pointed away from the center of the tree. Prune
