Note: The data are annual; the observations for 2006 are based on partially estimated data. The financing gap is the difference between capital expenditures and internally generated funds, adjusted for inventory valuation. Net equity retirement is the difference between equity retired through share repurchases, domestic cash-financed mergers, or foreign takeovers of U.S. firms and equity issued in public or private markets. Equity issuance includes funds invested by venture capital partnerships and stock option proceeds.

Source: Federal Reserve Board, flow of funds data.