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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.
- 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.
- GOODS such as plant, machinery and equipment which are used to produce other goods and services. See CAPITAL STOCK, INVESTMENT.