capital formation

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.

Example Sentences

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.

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"TRUMP token just signaled to every company, municipality, university & individual brand that crypto can now be used as a capital formation and customer bootstrapping mechanism," Jeff Dorman from investing firm Arca posted online.

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Project 2025, the Heritage Foundation-drafted road map to a second Trump administration, calls for reducing “unnecessary regulatory impediments to capital formation” in its chapter on the Securities and Exchange Commission.

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Gross fixed capital formation added 0.1 points and net trade a further 0.7 points as imports declined.

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SEC Chair Gary Gensler also told Reuters the SEC is focused on identifying and prosecuting any form of misconduct that might threaten investors, capital formation or markets more broadly.

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