Real capital

Real capital

Wealth that can be represented in financial terms, such as savings account balances, financial securities, and real estate.

Real Capital

1. Assets used to produce goods. Farm land is a major example of real capital: the farmer uses this asset to produce commodities, which he then sells to make a profit. See also: Financial capital.

2. Wealth that can be expressed in monetary terms. Major examples include the funds in savings accounts, as well as the value of real estate. Real capital is part of the calculation of an individual's or company's net worth.