1. equity interest of the owner in the business that is the difference between ASSETS and LIABILITIES, also called EQUITY or NET WORTH. In a corporation, capital represents the stockholders' equity. Capital stock consists of common stock and preferred stock. See also CAPITAL ACCOUNT; LEGAL CAPITAL: PAID-IN CAPITAL.

2. goods purchased for use in production.

3. WORKING CAPITAL, which is the difference between current assets and current liabilities.

4. long-term assets that are not bought and sold in the ordinary course of business. The term usually refers to FIXED ASSETS such as machinery, equipment, building, and land.