Formal
There are various definitions and uses:
- Wealth owned by corporations and individuals - money or property.
- The long term funds contributed to companies by the owners or shareholders to fund growth and expansion.
- The excess of assets over liabilities in a company or corporation - ‘Net worth’.
Real-world Example
An investor puts $500,000 of capital into a startup in exchange for equity, giving the business funds to grow before it's profitable on its own.
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