Capital

Capital

In finance, capital refers to the funds that a company or individual has available to invest in assets such as stocks, bonds, real estate, or other business ventures. It can also refer to the total value of a company's assets, including cash, investments, and property.

Capital can come in different forms, such as:

  • Equity capital: refers to the money invested in a company by its shareholders. It is also known as owner's equity or shareholders' equity.
  • Debt capital: refers to the money borrowed by a company from lenders such as banks or bondholders.
  • Capital is a crucial component of a business or investment as it provides the resources necessary for growth and expansion. The ability to raise capital is one of the key factors that determine the success of a company or investment.

It's also worth noting that Capital also refers to the total value of a company's assets, including cash, investments, and property; this is called Total Capital.