Capital stock

Definition

Capital stock refers to all physical assets such as machinery, equipment, buildings, infrastructure that are used in the production process. It represents accumulated wealth that can be utilized for future economic activities.

Related terms

Physical capital: Refers specifically to the tangible assets used in production such as machinery and equipment.

Human capital: Represents the skills, knowledge, education, and training of individuals that contribute to economic productivity.

Depreciation: The decrease in value of physical capital over time due to wear and tear or obsolescence.