Capital

Capital has several different definitions when used in a business context.   The most common definition is the amount invested in a business or an asset.   It is viewed in the equity section of the balance sheet that quantifies the amount invested by owners/stockholders in a business operation.

Stock

Stock

The one single term mostly equated to capitalism is ‘Stock’.  When a business is incorporated, stock is the core medium of exchange for the investment.  The company issues a certificate referred to as stock in exchange for the investment – most often cash.  This is the one true form of pure risk.  Most other forms of investments generally have some form of collateral, credit, or cash flow to substantiate the investment.

Syndication

Syndication

Syndication refers to a group of individuals or business entities working together to achieve a set goal(s).  In business, the goals vary.  The most common goal is to acquire capital and use the combined power of the group in exercising that capital for a better than average rate of return. 

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