accumulation investment definition
DEFINITION of 'Accumulation'. 1. An individual investor's cash contributions to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process. 2. Definition of Capital accumulation This is the process of acquiring additional capital stock which are used in the productive process. Capital involves man made equipment that is used to make other goods such as machines and factories. In economics and political economy, capital accumulation is often equated with investment. Capital accumulation refers to either real investment in means of production or financial investment in paper assets, though one can also refer to human capital accumulation, i.e., new education and training. This refers to profits that a company uses to increase its capital base. Capital accumulation involves acquiring more assets that can be used to create more wealth or that will appreciate in value. Capital accumulation involves acquiring more assets that can be used to create more wealth or that will appreciate in value. DEFINITION of 'Capital Accumulation'. This refers to profits that a company uses to increase its capital base. 1. When an individual investor is attempting to build up the value of a portfolio, he or she is said to be accumulating wealth. The reinvestment of profits over the course of the investment time horizon can greatly boost the pace of accumulation through the benefits of compounding. Accumulation Fund. the part of national income that is used to expand the process of reproduction, that is, the part spent on fixed capital stock, circulating capital, and reserves. the part of national income that is used to expand the process of reproduction, that is, the part spent on fixed capital stock, circulating capital, and reserves. The surplus product is the source of the accumulation fund. The accumulation fund is realized in the growth of national wealth. When an individual investor is attempting to build up the value of a portfolio, he or she is said to be accumulating wealth. The reinvestment of profits over the course of the investment time horizon can greatly boost the pace of accumulation through the benefits of compounding.
An individual investor's cash contributions to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process.