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The term "capital" refers to the resources that can be used to produce goods and services. These resources include financial resources as well as other assets like physical capital (machines, equipment, buildings, etc.) and human capital (the skills and knowledge of workers).
Capital in finance can refer to financial assets like stocks and bonds as well as the financial resources of a business or an individual, such as equity and debt. Along with labor and natural resources, capital is frequently regarded as one of the main components in economic analysis and has a significant role in determining a nation's total economic growth and productivity. Finance for corporate operations, investments, and the creation of new goods and services all depend heavily on capital.
