- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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The transfer of capital abroad in response to fears of political risk.
Industry:Financial services
Best defined by example. If you invest $100 today and make 5% in the first year and reinvest ($105) and make 8% in the second year, the compound annual growth rate is 6.489%. The calculation is $100x1.05x1.08=$113.4 which is what you end up with at the end of year two. The average return is (square root(113.4/100) -1)= 0.06489 or 6.489%. Note 1. If we had three compounding periods we would take the cubic root (power of 1/3). Note 2. If we had invested at exactly 6.489 in both periods, we get $100x1.06489x1.06489=$113.4. Note 3. The example is directed to a return - but CAGR could be applied to earnings growth, GDP growth, etc.
Industry:Financial services
Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency.
Industry:Financial services
Expansion of capital or capital goods through savings, which leads to economic growth.
Industry:Financial services
Contract specifying a standard volume of a particular currency to be exchanged on a specific settlement date.
Industry:Financial services
When a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss.
Industry:Financial services
A financial future contract for the delivery of a specified foreign currency.
Industry:Financial services
A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.
Industry:Financial services
