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Flight of capital
FLIGHT OF CAPITAL

Definition: (business) When people lose confidence in a particular economy or market and withdraw their investments from it, you can refer to a flight of capital from that economy or market.
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* All six elements would be in.


1. Purposeful and necessary, for those withdrawing funds, etc.

2. Loss of confidence is based on sound footing as will be advised or decided by a qualified professional, using information in an audited profit and loss account, a balance sheet, prospectus, etc.

3. Shareholders, industrialists, entrepreneurs, investors, etc. will take away all of their holdings. That is, loss of confidence will be total.

4. Investments are moved timely when it will still be possible to obtain some reasonable value from shares, stocks, savings, etc.

5. 'Haven' that resources or wealth will be moved to will be safe and secured. That is, investments will not be moved away, as a result of economic or financial instability, soon after 'arrival'.

6. Withdrawal serves purpose(s), whatever duration will be required, until economy or market recovers or rebounds, for a return to be made, if desired.
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See perfect DISINVESTMENT.

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