Thursday 6 October 2011

Term of the Day: Capital Investment

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Capital Investment

What Does it Mean?

Funds invested in a firm or enterprise for the purposes of furthering its business objectives. Capital investment may also refer to a firm's acquisition of capital assets or fixed assets such as manufacturing plants and machinery that is expected to be productive over many years.

Sources of capital investment are manifold, and can include equity investors, banks, financial institutions, venture capital and angel investors. While capital investment is usually earmarked for capital or long-life assets, a portion may also be used for working capital purposes.

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Investopedia Says...
Capital investment encompasses a wide variety of funding options. While funding for capital investment is generally in the form of common or preferred equity issuance... Read more »


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Related Terms
Capital
Capital Asset
Capital Funding
Return On Equity - ROE
Working Capital
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