Capital

Definition: Resources committed to a business or investment, including contributed equity and, in some contexts, borrowed funds.

Example

Investors contribute $150,000 of equity capital and arrange financing to purchase a rental property.

Keep the distinction clear

Capital is not simply current revenue or profit. Identify whether a question refers to equity capital, debt capital, or total resources invested.

Related terms

Equity · Investment · Asset

Keep studying

Income Approach: NOI, Cap Rate, Property Value, and Cash-on-Cash Return

References: FREC Course II syllabus: investment concepts

Pronunciation (US): KAP-ih-tul (capitals show stress)

Pronunciation reference: Merriam-Webster