capital formation

Cultural  

1. The creation of capital. For example, capital is created when banks lend the money they hold in savings accounts to firms that use the money to purchase machinery.

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Example Sentences

Instead he inherits an energy shock layered on top of an economy that needs more capital formation, not less.

From MarketWatch • May 22, 2026

U.S. public equity markets—the backbone of our economy—have long been the global gold standard for capital formation and wealth creation.

From The Wall Street Journal • Apr. 27, 2026

Nasdaq has long said it is legally obligated to provide fair access to companies that meet its listing standards, and must promote capital formation for even the smallest companies.

From Barron's • Dec. 30, 2025

Investments by companies in assets such as factories, machinery or construction – also called gross fixed capital formation – make up around 30% of GDP and are its second largest contributor following private consumption.

From BBC • Mar. 26, 2025

This factor is the mobilisation of capital and the consequent separation of the process of capital formation from the process of capital-using.

From Freeland A Social Anticipation by Hertzka, Theodor