(redirected from Capital investment)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Acronyms.
Related to Capital investment: venture capital


1. Economics the amount by which the stock of capital (plant, machinery, materials, etc.) in an enterprise or economy changes
2. Biology the outer layer or covering of an organ, part, or organism
Collins Discovery Encyclopedia, 1st edition © HarperCollins Publishers 2005
The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



the long-term placement of capital in industry, agriculture, transport, or other sectors of the domestic or a foreign economy for the purpose of deriving profits. In bourgeois economics, two kinds of investments are distinguished: financial investments and real investments.

A financial investment is the exchange of capital for stocks, bonds, and other securities issued by corporations or the state. A real investment is the placement of capital into productive fixed capital (buildings, installations, equipment), housing construction, and goods and material supplies in the country itself and abroad. Investments are realized by private corporations and the state. Private investments are directed into sectors of the national economy where the greatest profit can be derived (primarily, industry); state investments are directed into less profitable branches, for example, into the infrastructure (the underlying economic sectors of society, such as education, communications, and transport). Private investments are financed out of internal resources (depreciation deductions and retained profits) and out of other sources enlisted for this purpose: long-term credit and the issuance of securities. The financial sources of state investments are taxes, domestic and foreign loans, the income of state enterprises, and the issue of new money.

The financial operations involving investments are realized through banks (commercial and investment banks) and other financial agencies: savings banks, insurance companies, investment trusts, pension funds, and the like, which contribute to the accumulation of huge funds that belong to the population and that are used in the interests of the financial oligarchy.

The bourgeois economic experts foresee the limits of investments not in capitalist production relations but in technical production conditions and psychological factors. Although it is true that investments create income and expand markets, the antagonistic class relations of capitalist society ultimately restrict growth. The operation of the universal law of capital accumulation leads to a situation in which, because the investments are followed by a rise in the organic structure of capital, the wealth of the capitalists is growing whereas the conditions of life of the working class are deteriorating.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
The volume of Chinese net equity capital investments was higher than that of the US, which declined to $120.21 million, from $454.33 million in 2017.
In addition, Capital Investment and ADFG used the official launch event to announce that it has selected H Hotel, an international luxury hotel brand, to operate the 139- room hotel located at The Capital Plaza.
In addition, Capital Investment and ADFG used the official launch event to announce that it has selected H Hotel, a prestigious, international luxury hotel brand, to operate the 139- room hotel located at The Capital Plaza.
"Despite our capital budgets suffering a 30% reduction in real terms since 2010 as a result of the UK Government's austerity measures, we have made every effort to maximise our investment and protect capital investment. We have a clear fiscal stimulus approach here in Wales, not fiscal austerity."
"So, when people talk about stimulus, capital investment in a mixed economy like ours is key.
The capital investment program includes $4.0 million for Mountain Water Company, a regulated utility in Missoula, MT.
The organisations which suggested tax reliefs for infrastructure or capital investment reported that they would increase their headcounts by an average of 6% as a result - while increasing their capital expenditure by 12% and research and development by 17% Simon Jones, office senior partner and head of KPMG's tax team in Cardiff, said: "When asked what single measure in the UK tax or regulatory regime the government should introduce over the next 12 months, tax relief on infrastructure or capital investments was the stand-out leader in terms of what was suggested.
The 2012 USIM analyzed 5,000 business investments, which account for $135 billion of capital investment in business facilities and more than 336,000 new and retained jobs announced in the US in 2011.
The UAE attracted the highest number of projects (328), while Saudi Arabia attracted the highest capital investment, which grew 40 per cent in 2011 to just over $14 billion (Dh51.4 billion).
ISTANBUL, December 20, 2011 (A.A) - Turkey's science, industry and technology minister said on Tuesday that Turkey had drawn 11.5 billion USD of foreign capital investment so far.
Capital investment decelerates slightly in August on increased market volatility

Full browser ?