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Capital Formation

   Also found in: Wikipedia 0.01 sec.
Capital formation
Expansion of capital or capital goods through savings, which leads to economic growth.

capital formation
The creation of productive assets that expand an economy's capacity to produce goods and services. Private savings facilitates capital formation by allowing resources to be diverted to corporate investment rather than individual consumption.

Capital Formation
The transfer of capital from individuals, organizations, or government for business use. For example, a widget company experiences capital formation when people buy widgets. The company can then use the profit to encourage investment or to expand its operations, among other options. Capital formation is crucial to economic growth.


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But capital formation will not rise unless capital return rises, and this highlights an important policy implication.
While there, Sanders was responsible for product development, capital formation and investor services for a variety of real estate funds.
Margo Thorning of the American Council on Capital Formation was a guest on "Live Chats with the Experts" on CA's GlobalWarming.
 
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