Title: Capital Definition
Author: Marshall Hargrave
Source: Investopedia https://www.investopedia.com/terms/c/capital.asp
TLDR: Capital is the financial assets that a firm holds, these can include funds in accounts or from financing.
Topic Tags: Capital, Equity, Finance, Debt, Valuation
What is capital?What is capital used for?
What are different types of capital?
- Capital is a term for financial assets, such as funds held in deposit accounts and funds obtained from special financing sources.
- Financing capital usually comes with a cost.
- The four major types of capital include debt, equity, trading, and working capital.
- Companies must decide which types of capital financing to use as parts of their capital structure.
Follow Up Questions:
What are the different types of capital financing?
What’s the difference between capital and money?