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accumulation

   Also found in: Dictionary/thesaurus, Medical, Encyclopedia, Wikipedia, Hutchinson 0.06 sec.
Accumulation
In the context of corporate finance, refers to profits that are added to the capital base of the company rather than paid out as dividends. See: Accumulated profits tax.
In the context of investments, refers to the purchase by an institutional broker of a large number of shares over a period of time in order to avoid pushing the price of that share up.
In the context of mutual funds, refers to the regular investing of a fixed amount while reinvesting dividends and capital gains.

accumulation
The purchase of a particular security throughout a period of time. For example, the accumulation of a substantial quantity of a stock by a portfolio manager may take place over a period of several weeks or months in order to avoid driving up the price of the stock. An individual's accumulation of shares of a mutual fund may occur over a period of many years.


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