The financial term capital is used to describe the funds provided by both the owners (investors) and creditors of a company to buy equipment that can produce goods or provide services.
In the legal arena, capital refers to the portion of owner's equity that is required by statute to be retained by the company to protect creditors. This is the value of all capital stock issued.
Accountants define capital as owner's equity, and recognize both portions of this account:
Unfortunately, the term capital can be correctly used to describe:
With such generalized definitions, it's important to understand the context in which the word is used.