What is Capital in Finance and Types of Capital Explained with Examples

视频信息

答案文本 复制

视频字幕 复制

Capital in finance refers to the financial assets and resources that businesses use to start and operate. This includes cash money, physical equipment like machinery, and buildings or real estate. These capital assets are essential for funding day-to-day operations, acquiring new resources, and driving business growth and expansion. Financial capital represents the money and funds available for business investment. There are two primary types. Equity capital involves selling ownership stakes or shares in the company to investors, such as through an initial public offering. Debt capital involves borrowing money from lenders like banks or bondholders, which must be repaid with interest over time.