Accumulation

1. An individual investor's cash contributions to invest in securities over a period of time in order to build a portfolio of desired value. Dividends and capital gains are also reinvested during this process.

2. An institutional investor's purchase of a large number of shares in a public company over an extended period of time.

3. The retention of company profits in corporate finance for reinvestment in business operations, as opposed to the payout of earnings as dividends to shareholders.

1. When an individual investor is attempting to build up the value of a portfolio, he or she is said to be accumulating wealth. The reinvestment of profits over the course of the investment time horizon can greatly boost the pace of accumulation through the benefits of compounding.

2. Large investors and financial institutions are limited in their ability to move in and out of securities because they deal with large numbers of shares that would drive the price of a security up if ordered all at once. In order to buy their intended number of shares, institutional investors spread their accumulation of shares over a period of time.

3. As opposed to paying dividends out to investors, accumulation of earnings within the corporation boosts business expansion and growth and may produce extra value for shareholders in the long run.


Investment dictionary. . 2012.

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  • accumulation — [ akymylasjɔ̃ ] n. f. • 1336; de accumuler 1 ♦ Action d accumuler; le fait d être accumulé. ⇒ addition, agglomération, amoncellement, entassement; amas, quantité, tas. Une accumulation de richesses, de provisions. « l accumulation des stocks »… …   Encyclopédie Universelle

  • accumulation — ac·cu·mu·la·tion n: increase or growth by addition esp. when continuous or repeated; specif: an increase in the amount of a fund or property by the continuous addition to it of the income or interest it generates to treat a stock dividend as… …   Law dictionary

  • Accumulation — Ac*cu mu*la tion, n. [L. accumulatio; cf. F. accumulation.] 1. The act of accumulating, the state of being accumulated, or that which is accumulated; as, an accumulation of earth, of sand, of evils, of wealth, of honors. [1913 Webster] 2. (Law)… …   The Collaborative International Dictionary of English

  • accumulation — Accumulation. sub. f. v. Amas, entassement, surabondance. Accumulation de richesses. accumulation de droit. par accumulation de droit …   Dictionnaire de l'Académie française

  • accumulation — (n.) late 15c., from L. accumulationem (nom. accumulatio) a heaping up, noun of action from pp. stem of accumulare to heap up, amass, from ad in addition (see AD (Cf. ad )) + cumulare heap up, from cumulus heap (see CUMULUS (Cf …   Etymology dictionary

  • accumulation — [n] gathering or amassing accession, accretion, addition, agglomeration, aggrandizement, aggregation, amassment, augmentation, build up, chunk, collecting, collection, conglomeration, enlargement, gob, growth, heap, hoarding, hunk, increase,… …   New thesaurus

  • accumulation — Accumulation, f. acut. Accumulatio …   Thresor de la langue françoyse

  • accumulation — [ə kyo͞om΄yo͞o lā′shən, ə kyo͞om΄yəlā′shən] n. 1. an accumulating or being accumulated; collection 2. accumulated or collected material; heap 3. the addition to capital of interest or profits …   English World dictionary

  • Accumulation — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sur les autres projets Wikimedia : « Accumulation », sur le Wiktionnaire (dictionnaire universel) Le mot accumulation est employé dans… …   Wikipédia en Français

  • ACCUMULATION — s. f. Entassement, amas de plusieurs choses ajoutées les unes aux autres. Il se dit Des choses physiques et Des choses morales. Accumulation de matériaux, de marchandises, de denrées. Accumulation de biens, d honneurs. Accumulation de preuves.… …   Dictionnaire de l'Academie Francaise, 7eme edition (1835)

  • ACCUMULATION — n. f. Action d’accumuler ou Résultat de cette action. Il se dit des Choses physiques et des Choses morales. Accumulation de matériaux, de marchandises, de denrées. Accumulation de biens, d’honneurs. Accumulation de preuves. Accumulation… …   Dictionnaire de l'Academie Francaise, 8eme edition (1935)

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