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Definition

Capital

Capital is production inputs consisting of technology, tools, information, and physical facilities.


Capital is the long-term funds contributed to a bank primarily by its owners, consisting mainly of stock, reserves, and retained earnings.


Capital is broadly defined, capital represents the tools which people use when they work, in order to make their work more productive and efficient. That means, capital is the total of tools, equipment, machinery, and buildings used to produce goods and services. Under capitalism, capital can also refer to a sum of money invested in a business in hopes of generating profit. In this case capital does not refer simply to money. Money by itself is not productive: but when it purchases drills, computers,forklifts, and the building to place them in it becomes productive.

Webster Dictionary Meaning

1. Capital
- That portion of the produce of industry, which may be directly employed either to support human beings or to assist in production.
- Anything which can be used to increase one's power or influence.
- An imaginary line dividing a bastion, ravelin, or other work, into two equal parts.
- A chapter, or section, of a book.
- See Capital letter, under Capital, a.
2. Capital
- Of or pertaining to the head.
- Having reference to, or involving, the forfeiture of the head or life; affecting life; punishable with death; as, capital trials; capital punishment.
- First in importance; chief; principal.
- Chief, in a political sense, as being the seat of the general government of a state or nation; as, Washington and Paris are capital cities.
- Of first rate quality; excellent; as, a capital speech or song.
- The head or uppermost member of a column, pilaster, etc. It consists generally of three parts, abacus, bell (or vase), and necking. See these terms, and Column.
- The seat of government; the chief city or town in a country; a metropolis.
- Money, property, or stock employed in trade, manufactures, etc.; the sum invested or lent, as distinguished from the income or interest. See Capital stock, under Capital, a.
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