In its narrow financial sense, capital is a sum of money from which an income can be derived. The two most traditional means for such income is interest (in the case of loans) and dividends (in the case of stocks). In broader terms, capital is a resource that enhances life, of which several types can be distinguished: financial capital, physical capital (e.g., plants, equipment), intellectual capital (e.g., patents, copyrights), social capital (e.g., relationships) and natural capital (Mother Nature).
« Back to Glossary IndexBy: Arman Abdul Rahman