Capital Flows

Dictionary Says

Definition of 'Capital Flows'

The movement of money for the purpose of investment, trade or business production. Capital flows occur within corporations in the form of investment capital and capital spending on operations and research & development. On a larger scale, governments direct capital flows from tax receipts into programs and operations, and through trade with other nations and currencies. Individual investors direct savings and investment capital into securities like stocks, bonds and mutual funds. 

Investopedia Says

Investopedia explains 'Capital Flows'

Capital flows are aggregated by the U.S. government and other organizations for the purpose of analysis, regulation and legislative efforts. Different sets of capital flows that are often studied include the following:

• Asset-class movements – measured as capital flows between cash, stocks, bonds, etc.
• Venture capital – investments in startup businesses
• Mutual fund flows – net cash additions or withdrawals from broad classes of funds
• Capital-spending budgets – examined at corporations as a sign of growth plans
• Federal budget – government spending plans

Capital flows can help to show the relative strength or weakness of capital markets, especially in contained environments like the stock market or the federal budget. Investors also look at the growth rate of certain capital flows, like venture capital and capital spending, to find any trends that might indicate future investment opportunities or risks.
Search results for

'Capital Flows'

  • Understanding Capital And Financial Accounts In The Balance Of ...

    http://www.investopedia.com/articles/03/070203.asp
    ... world. Liberal Accounts The capital and financial accounts are intertwined
    because they both record international capital flows. In ...
  • How Interest Rates Affect Property Values

    http://www.investopedia.com/articles/mortgages-real-estate/08/interest-rates-affect-property-values.asp
    ... Because interest rates also affect capital flows, the supply and demand for capital
    and investors' required rates of return on investment, interest rates will ...
  • How Globalization Affects Developed Countries

    http://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp
    ... in specialization and economies of scale, which will result in greater trade in
    financial services through both capital flows and cross-border entry activity. ...
  • The Currency Market Information Edge

    http://www.investopedia.com/articles/forex/09/forex-information-currency-market.asp
    ... Large corporations also account for a significant proportion of foreign exchange
    volume, especially companies that have substantial trade or capital flows. ...
  • DCF Analysis: Forecasting Free Cash Flows | Investopedia

    http://www.investopedia.com/university/dcf/dcf2.asp
    ... by taking capital expenditure, disclosed in a company's statement of cash flows,
    and subtracting non-cash depreciation charges, found on the income statement. ...
  • Which is a better measure for capital budgeting, IRR or NPV?

    http://www.investopedia.com/ask/answers/05/irrvsnpvcapitalbudgeting.asp
    ... If the project has cash flows of -$50,000 in year one (initial capital outlay),
    returns of $115,000 in year two and costs of $66,000 in year three because the ...
  • Arch Capital - A Weak Market Will Take Its Toll Eventually

    http://stocks.investopedia.com/stock-analysis/2010/Arch-Capital---A-Weak-Market-Will-Take-Its-Toll-Eventually-ACGL-BRK.A-AXS-ACE0728.aspx
    ... As I said, rates are probably going to stay soft until something rattles the
    industry enough to change the capital flows. That "something ...
  • CFA Level 1 Study Guide - Financial Statements - Revenue ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/revenue-recognition-cash-flows-ratios.asp
    ... 6.18 Revenue Recognition Effects on Cash Flows and Financial Ratios; 6.19 The Cash ...
    7.14 Calculating Basic and Fully Diluted EPS in a Complex Capital Structure. ...
  • What Is The Balance Of Payments?

    http://www.investopedia.com/articles/03/060403.asp
    ... With the advent of the emerging market economic boom - in which capital flows into
    these markets tripled from USD 50 million to USD 150 million from the late ...
  • Valuing Firms Using Present Value Of Free Cash Flows

    http://www.investopedia.com/articles/fundamental-analysis/11/present-value-free-cash-flow.asp
    ... Present Value of Operating Free Cash Flows The valuation method is based on the
    operating cash flows coming in after deducting the capital expenditures, which ...

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