Capital Investment
/ˈkæpɪtl ɪnˈvɛstmənt/
Definitions
- (n.) The acquisition of physical assets or financial resources by a business or individual to generate future economic benefit.
The company made a significant capital investment in new manufacturing equipment.
- (n.) Funds allocated for long-term assets, distinguished from operational expenses in accounting and corporate law.
Capital investment decisions affect a corporation’s tax liabilities and depreciation schedules.
Related terms
See also
Commentary
Capital investment is central in corporate and tax law contexts; drafters should distinguish it clearly from operational expenditures.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.