Capital Shares

Capital shares

One of two types of shares in a dual-purpose investment company, which entitle the holder to the appreciation or depreciation in the value of a portfolio, as well as the gains from trading in the portfolio. Antithesis of income shares.

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capital shares

One of two types of stock issued by a dual purpose fund in which the owner is entitled to all of the capital value but none of the current income of the fund. Capital shares appeal primarily to aggressive investors seeking capital growth. Compare income shares.

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Capital Shares

In a dual purpose fund, the shares that are entitled to appreciation on the firm's investments. Dual purpose funds issue two types of shares: capital shares and income shares, which are entitled to the firm's ordinary income. A dual purpose fund has the advantage of allowing shareholders to choose which shares in which to invest (according to their investment goals) without the difficulty of changing investment vehicles.