Capital account

From Wikipedia, the free encyclopedia

Some information in this article or section is not attributed to sources and may not be reliable.
Please check for inaccuracies, and modify and cite sources as needed.

The capital account is one of two primary components of the balance of payments, the other being the current account.

The capital account records all transactions between a domestic and foreign resident that involves a change of ownership of an asset. It is the net result of public and private international investment flowing in and out of a country. This includes foreign direct investment, plus changes in holdings of stocks, bonds, loans, bank accounts, and currencies.

By convention, resident acquiring a domestic asset (a capital inflow). A capital account debit is recorded if a transaction leads to a domestic resident acquiring a foreign asset (a capital outflow). This convention ensures that the sum of the current and capital account balances is always zero.

Along with transactions pertaining to non-financial and non-produced assets, the capital account may also include debt forgiveness, the transfer of goods and financial assets by migrants leaving or entering a country ,. the transfer of ownership on fixed assets, the transfer of funds received to the sale or acquisition of fixed assets, gift and inheritance taxes, death levies, patents, copyrights, royalties, and uninsured damage to fixed assets. (http://www.investopedia.com/articles/03/070203.asp).

 view  Topics in Trade

Definitions

Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Comparative advantage · Absolute advantage · Import substitution · International trade

Organizations & Policies

World Trade Organization · International Monetary Fund · World Bank · International Trade Centre · Trade bloc · Free trade zone · Trade barrier · Import quota · Tariff

Schools of Thought

Free trade · Balanced trade · Mercantilism · Protectionism

Related Issues

Globalization · Outsourcing · Trade justice and fair trade
Retrieved from "http://en.wikipedia.org../../../c/a/p/Capital_account.html"
Advanced Search
Included Web Search Engines


Safe Search

close

Top Matching Results

Occasionally Search.com will highlight specialized results that are based on the context of your query. Examples of specialized results include specific links to news, images, or video.

Top Matching Results may highlight information from other Search.com pages, content from the CNET Network of sites, or third party content. The listings are based purely on relevance. Search.com does not receive payment for listings in this section but our partners that provide this data may get paid for listing these products.

Sponsored Links

This section contains paid listings which have been purchased by companies that want to have their sites appear for specific search terms and related content. These listings are administered, sorted and maintained by a third party and are not endorsed by Search.com.

Search Results

Search.com sends your search query to several search engines at one time and integrates the results into one list which has been sorted by relevance using Search.com's proprietary algorithm. You can customize the list of search engines included in your metasearch from the preferences.

The search engines that are used in your metasearch may allow companies to pay to have their Web sites included within the results. To view the Paid Inclusion policy for a specific search engine, please visit their Web site. Search.com does not accept payment or share revenue with any search engine partner for listings in this section.