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Definition of 'Capital Control'
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. This includes taxes, tariffs, outright legislation and volume restrictions, as well as market-based forces. Capital controls can affect many asset classes such as equities, bonds and foreign exchange trades.
Tight capital controls are most often found in developing economies, where the capital reserves are lower and more susceptible to volatility.
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Investopedia explains 'Capital Control'
Capital controls are the subject of much debate; some feel that they inherently limit economic progress and efficiency while others see them as prudent, adding a measure of safety to the economy. Most of the largest economies have a liberal policy of capital control, having phased out stricter rules from the past. But most of these same economies have basic stopgap measures in place to prevent against a mass exodus of capital (outflows) during a time of crisis or a massive speculative assault on the currency.
Global factors, like globalization and the integration of financial markets, have contributed to an overall easing of capital controls. Opening up an economy to foreign capital generally allows for companies to have easier access to capital, and can raise overall demand for domestic stocks.
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Search results for 'Capital Control'
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http://www.investopedia.com/articles/forex/11/taking-advantage-central-banks.asp
... It seems that every country's central bank these days is involved in some
sort of capital control over their currency. Set aside ...
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http://www.investopedia.com/articles/03/070203.asp
... to Reality: a Little Control Can Be Good Aside from political ideologies, some sound
economic theories state why some capital account control can be good. ...
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http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/factors-affecting-cost-of-capital.asp
... Real Estate; Statistics; Stocks; Taxes; Venture Capital. ... 4.6 The Demand and Supply
of Financial and Physical Capital; 4.7 Economic Rent and Opportunity Cost; ...
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http://www.investopedia.com/articles/fundamental-analysis/08/performance-profitability-value.asp
Take Control With Investing Absolutes. ... put into a company, return on investment
(ROI), which is the return a company receives on invested capital and return on ...
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http://www.investopedia.com/ask/answers/09/steel-industry-truman.asp
... Why did the US government take control of the steel industry in 1952? In
early 1950, Senator McCarthy began seeing communists in ...
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http://www.investopedia.com/ask/answers/09/series7-031009.asp
... are tools that are employed by the Federal Reserve in its efforts to control the
money ... want to sell it back to yourself, do you have to pay capital gains taxes ...
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http://www.investopedia.com/articles/pf/08/speding-holiday.asp
8 Tips To Help You Control Holiday Spending. December 08 2010 | Filed Under ยป
Budgeting, Credit Cards, Personal Finance. If you're ...
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http://www.investopedia.com/exam-guide/series-7/portfolio-management/capital-market-line.asp
... asset allocation, the process of deciding how to distribute an investor's capital
for investment ... You can't control how they react to the market, but you can ...
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http://www.investopedia.com/articles/economics/08/monetarism.asp
... Monetarism has several key tenets: The control of the money supply is the key ...
Monetarists felt that markets would readily adapt to more capital being available ...
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http://www.investopedia.com/articles/optioninvestor/07/rolling_leaps.asp
... LEAP calls can give investors the ability to construct long-term portfolios of stocks
or index ETFs and thereby control larger investments with less capital. ...
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