Capital Account
Definition of 'Capital Account'A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public and private international investments flowing in and out of a country.May also refer to an account showing the net worth of a business at a specific point in time. |
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Investopedia explains 'Capital Account'The capital account includes foreign direct investment (FDI), portfolio and other investments, plus changes in the reserve account. The capital account and the current account together constitute a nation's balance of payments.Since large capital inflows or outflows can have destabilizing effects on a nation's economy, many countries have controls in place to regulate capital account flows. |
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