The Motley Fool Discussion Boards

Previous Page

Investing Education / Terms, Definitions, & Jargon


Subject:  Re: Capex Date:  3/26/2011  12:59 AM
Author:  TMFSandman Number:  2142 of 2244

You're right, capex is another way of saying that you're investing new money into the existing business. However, a company's capex doesn't include acquisitions, and it doesn't include a company's investments in treasuries, bonds, securities, or anything else. So although capex is an investment by a company, it's not the only investment the company can make.

If you look at the cash flow statement of a company, you'll see capex listed under the Investing Cash Flows section. You'll see that capex is only one of several investments a company can make.

Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us