Capital (economics)
Finance
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Real Estate market
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Corporate finance
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Capital budgeting
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Accounting
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Auditing
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Leveraged buyout
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Personal finance
Credit and Debt
Employment contract
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Financial planning
Public finance
Tax
Banks and banking
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List of banks
Deposits
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History of finance
Stock market bubble
Recession
Stock market crash
History of private equity
In economics, capital or capital goods or real
capital refers to factors of production used to
create goods or services that are not them-
selves significantly consumed (though they
may depreciate) in the production process.
Capital goods may be acquired with money or
financial capital. In finance and accounting,
capital generally refers to financial wealth,
especially that used to start or maintain a
business.
Capital in narrow and
broad uses
In classical economics, capital is one of three
(or four, in some formulations) factors of pro-
duction. The others are land, labor and (in
some versions) organization, entrepreneur-
ship, or management. Goods with the follow-
ing features are capital:
• It can be used in the production of other
goods (this is what makes it a factor of
production).
• It was produced, in contrast to "land,"
which refers to naturally occurring
resources such as geographical locations
and minerals.
• It is not used up immediately in the
process of production unlike raw materials
or intermediate goods. (The significant
exception to this is depreciation
allowance, which like intermediate goods,
is treated as a business expense.)
These distinctions of convenience carried
over to n