capital

Definition

Already-produced durable goods available for use as a factor of production, such as steam shovels (equipment) and office buildings (structures).

Etymology

From Middle English capital, borrowed partly from Old French capital and partly from Latin capitālis (“of the head”) (in sense “head of cattle”), from caput (“head”) (English cap) + -ālis (suffix forming adjectives). Use in trade and finance originated in Medieval economies when a common but expensive transaction involved trading heads of cattle. The noun is from the adjective. Compare chattel and kith and kine (“all one’s possessions”), which also use “cow” to mean “property”. Doublet of cattle and chattel.

Example Sentences

• "He does not have enough capital to start a business."
• "The markets crashing symbolized capital’s discontent with the tax reforms passed."
• "Washington D.C. is the capital of the United States of America."