capital


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Related to capital: capital letter, Capital market

Capital

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.

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.

capital

  1. the funds invested in a BUSINESS in order to acquire the ASSETS which the business needs to trade. Capital can consist of SHARE CAPITAL subscribed by SHAREHOLDERS or LOAN CAPITAL provided by lenders.
  2. GOODS such as plant, machinery and equipment which are used to produce other goods and services. See CAPITAL STOCK, INVESTMENT.

capital

the contribution to productive activity made by INVESTMENT in physical capital (for example, factories, offices, machinery, tools) and in HUMAN CAPITAL (for example, general education, vocational training). Capital is one of the three main FACTORS OF PRODUCTION, the other two being LABOUR and NATURAL RESOURCES. Physical (and human) capital make a significant contribution towards ECONOMIC GROWTH. See CAPITAL FORMATION, CAPITAL STOCK, CAPITAL WIDENING, CAPITAL DEEPENING, GROSS FIXED CAPITAL FORMATION, CAPITAL ACCUMULATION.

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.
References in periodicals archive ?
More private equity financing, especially venture capital financing, was accomplished in the past three years than in the previous thirty.
If the return on capital is lower, investment will fall and so will the capital stock.
P seeks to carry back his 2001 AMT capital loss of $1,075,289 to reduce his 2000 AMTI, contending that the capital loss limits of Secs.
A report from Canada's Policy Research Initiative says that "social capital has particularly important implications for three key areas of public policy: helping populations at risk of social exclusion, supporting key life-course transitions, and promoting community development.
Originally capital meant physical or economic resources like land, machinery, or labor power that produced new goods or could be the basis of profit.
TEI commends the Quebec government for increasing the general paid-up capital deduction, but we urge it to reconsider the decision to defer the implementation of the capital tax rate reduction.
The Basel Capital Accord, the current international framework on capital adequacy, was adopted in 1988 by a group of central banks and other national supervisory authorities, working through the Basel Committee on Banking Supervision.
Capital is spread evenly across businesses and assets, instead of focused allocation by portfolio role and investment type
The long-awaited conversion of the largest life mutuals will further accelerate change, causing insurers in all industry sectors to feel the effects of greater influence from capital markets.
About GrowthWorks Capital and the Working Opportunity Fund
Before the new regulations, capital gain was normally excluded from distributable net income (DNI), because most state laws excluded capital gain from trust income.