2 Important information about capital


The term capital is one of the terms that we hear and may use a lot, as it is specific to the world of money, the world of business and many other things, and in our article today we will learn about many important information related to the world of money, its concept and types.

What is meant by capital?

The concept of capital means that it is a financial asset or its value, such as money that is kept in deposit accounts, and it also symbolizes something else, which is tangible equipment that is used in factories or in various facilities, or used in production. Money includes various facilities, including buildings that are used to store goods, that is, it includes warehouses.

What is meant by the term capital market?
As for the capital market, it means the place where buyers and sellers are involved in the field of securities trading, and it includes both stocks and bonds, and through this market various operations of selling and buying capital are carried out through those who participate, whether they are individuals or institutions.

What are the different types of capital?

Capital has many types, and below we will get to know some of them:

Borrowed capital,
which is the capital that includes the possibility of obtaining it through debt, and this is done through a group of different sources, including friends and financial institutions in addition to insurance companies.

Equity capital
As for equity capital, it includes a group of investments that do not need to be repaid, and this type is the type that includes within it the investment of those who own companies in addition to many contributions that are obtained through the sale of shares.

Working capital Working
capital means short-term liquidity in companies, and this capital is evident through the company’s ability to cover debts and accounts payable.

Trade capital Trade
capital is the amount of money that is allocated to the buying and selling of securities.

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