Economics

Economics

basics of economics

Contributors in Economics

Economics

Markets in securities such as bonds and shares. Governments and companies use them to raise longer-term capital from investors, although few of the millions of capital-market transactions every day ...

capital intensive

Economy; Economics

A production process that involves comparatively large amounts of capital; the opposite of labor intensive.

capital gains

Economy; Economics

The profit from the sale of a capital asset, such as a share or a property. Capital gains are subject to taxation in most countries. Some economists argue that capital gains should be taxed lightly ...

capital flight

Economy; Economics

When capital flows rapidly out of a country, usually because something happens which causes investors suddenly to lose confidence in its economy. (Strictly speaking, the problem is not so much the ...

capital controls

Economy; Economics

Government-imposed restrictions on the ability of capital to move in or out of a country. Examples include limits on foreign investment in a country’s financial markets, on direct investment by ...

capital asset pricing model (CAMP)

Economy; Economics

A method of valuing assets and calculating the cost of capital (for an alternative, see arbitrage pricing theory). The capital asset pricing model (CAPM) has come to dominate modern finance. The ...

capital adequacy ratio

Economy; Economics

The ratio of a bank’s capital to its total assets, required by regulators to be above a minimum (“adequate”) level so that there is little risk of the bank going bust. How high this minimum level is ...