Definition
The process of increasing a company's or country's assets by acquiring new resources for production or investment. In financial markets, it refers to the creation of capital through the mobilization of savings and their investment in productive assets.
Example Usage
"The IPO market is crucial for capital formation as it allows growing companies to access funds needed for expansion.”
Related Terms
Initial Public Offering (IPO)Capital
Tags
InvestmentEconomicsFundamentals
Course Module
Module 1: Introduction to Financial Markets