What is a capital growth?

Increase in capital is an increase in the capital of the company or company. Capital or financial capital, as technically called, is the money invested in the company to allow it to produce their goods or products, to provide their services, or do everything that is needed to work and make it profit. This capital can be provided by investors, creditors and/or owners of the company themselves.

Most people have the idea that capital is the finance needed to open or build a company from scratch, but this extended idea is not quite correct. Another type of capital is what is called real capital or economic capital. This applies to the physical things purchased by the financial capital used in the daily operations of the company. Some examples of real capital are machines, equipment, tools, vehicles and buildings.

Capital In addition can be an increase in the financialrick or real capital or in both. It is more often an increase in finances or money wealth of business. In fact, financial capital is easy to convert to real capital, so freely, it does not matter to distinguish what type of capital is observed. Increasing capital may occur when investors give a larger investment or when the owners put more money into their business. It can also take place as a result of the release of new shares. In addition, this may happen when the supply of capital increases.

The company's financial status is improved by increasing capital. With a larger capital, the company can increase its production, marketing and sales. It can be expanded to include its ongoing operations or even embark on new disciplines that have a feasibility study suggesting that they can be lucrative for society. As capital increases, there is greater freedom to increase supplies, buy multiple machines, upgrade to more high-tech equipment, etc.

for the use of economic terminology mIt can be increased by capital to expand the firm capital of the company and its working capital. Fixed capital is capital used in purchasing assets that will be permanently held by the company. Working capital is the one that is used to maintain operations, payment of expenditure and purchase of shares and loan.

Any and all the money coming to society should be used deliberately, and this also applies to increase capital. It should be noted that the increase in capital may be caused by loans provided by banks or other credit institutions; This indicates an increase in borrowed capital. These loans must eventually be paid under the loan agreement.