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

Solomon also expressed bullishness on winning business from upcoming initial public offerings that will proceed because "it's important for those businesses and for capital formation on those businesses," he predicted.

From Barron's • Apr. 13, 2026

With stablecoins gaining a regulatory foothold, the next frontier is the financial infrastructure they power: tokenized assets, decentralized exchanges and new means of capital formation.

From The Wall Street Journal • Apr. 8, 2026

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

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.

From Reuters • May 9, 2023

In absolute terms annual capital formation increased from 1.06 billion leva in 1961 to 3.06 billion leva in 1970, then declined to 2.74 billion leva in 1971.

From Area Handbook for Bulgaria by Baluyut, Violeta D.