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

Private-markets firms are laying out some serious cash to expand their capital formation teams focused on secondaries as the strategy gains traction among institutional and wealth investors.

From The Wall Street Journal

On average, a managing director involved in capital formation with a private-credit firm makes roughly $300,000 in base salary and can qualify for $1.2 million in cash bonuses, according to data from executive search firm Jensen Partners.

From The Wall Street Journal

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

That sequence is governed by permitting, labor availability, engineering complexity and capital formation, not by quarterly headlines.

From The Wall Street Journal

Equity investments by well-governed merchant-banking subsidiaries in local businesses boost capital formation; those from private-equity companies all too often favor high-risk speculation.

From Barron's