Capital is wealth in the form of money or valuable assets owned by individuals or organizations available for various purposes like starting a business or making investments.

It’s often seen as a large sum of money used to make even more money. But capital isn’t just about cash; it can also refer to things like buildings or machines that help produce goods or make business work better.

In the world of business, capital means the money a company has to run its everyday operations and to plan for future growth. It comes in different types, including working capital, debt, equity, and trading capital, each with its role.

• Working Capital: This is the money a business uses for everyday expenses like buying supplies or paying the bills.
• Debt: When a company borrows money, it’s using debt capital. But this also means they have to pay it back later.
• Equity: This is the ownership part of the business, like shares of stock. It’s the money that owners or investors have put into the company.
• Trading Capital: This is like the budget for trading assets, such as stocks or cryptocurrencies, to make a profit.

When a business uses debt capital, it’s balanced by a debt liability on their financial records. The mix of these types of capital is known as the company’s capital structure, and it shapes how they do business.

Also, in many countries, digital currencies like Bitcoin are seen as capital assets. This means they might be taxed, just like stocks or other investments. So, in simple terms, capital is the money and valuable stuff that businesses and individuals use to grow wealth, make things work, and invest for the future.