Equity capital flows (direct investment)

Equity capital increases and decreases. Equity capital increases consist of payments by parent companies to third parties abroad for the purchase of capital stock or other equity interests when they acquire an existing business, payments made to acquire additional ownership interests in their affiliates, and capital contributions to their affiliates. Equity capital decreases are funds that parent companies receive (except from distributions of earnings) when they reduce their equity interest in their affiliates. Related terms: Direct investment capital flows.