Capital

Capital represents the stockholders equity in a corporation. Capital goods, real capital or capital is usually one of the most important factors in production, or the creation of goods and services. Financial capital, or money, is the most common way to accrue capital goods. The way that capital works in Marxian or classical economics is that capital, or money, is used to purchase a product or service in order to sell it again for a profit. Wealth grows out of the circulation of goods and capital and forms the basis of what we now see as our economic system.