capital

Capital

Money invested in a firm.

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Capital

Money that one has invested. For example, one uses capital when building a factory to make a new product. Likewise, one uses capital when one buys a single share of a stock. Free flow of capital into investments is thought to be a major component of economic growth. Generally speaking, businesses can only expand when they are able to raise capital from investors or borrow it from a bank or through a bond issue. See also: Capitalization, Capitalism.

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Capital. Capital is money that is used to generate income or make an investment. For example, the money you use to buy shares of a mutual fund is capital that you're investing in the fund.

Companies raise capital from investors by selling stocks and bonds and use the money to expand, make acquisitions, or otherwise build the business.

The term capital markets refers to the physical and electronic environments where this capital is raised, either through public offerings or private placements.

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capital

(1) In architecture, the top part of a column.(2) In finance: (a) All the accumulated goods, possessions, and assets used for the production of income and wealth. (b) The amount invested in business.

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Capital

What Does Capital Mean?

(1) Financial assets or the financial value of assets, such as cash. (2) The factories, machinery, and equipment owned by a business and used for operations and production.

Investopedia explains Capital

Capital is an extremely vague term, and its specific definition depends on the context in which it is used. In general, it refers to financial resources available for use: working capital.

Related Terms:
• Capital Asset Pricing Model—CAPM
• Capital Gain
• Capital Structure
• Depreciation
• Venture Capital