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Finance Dictionary and Glossary of Investment Terms
Capital Flight
Definition 1.
The action of investors moving their securities out of a particular country because of a fear of country-specific risks or political instability, or because of the lure of higher returns in a different country.
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Definition 2.
The movement of money from one investment to another in search of greater stability or increased returns. Sometimes specifically refers to the movement of money from investments in one country to another in order to avoid country-specific risk (such as high inflation or political turmoil) or in search of higher returns. Capital flight is seen most commonly in massive foreign capital outflows from a specific country, often at times of currency instability. Often, the outflows are large enough to affect a country's entire financial system.
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