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Photo: Norris Wong/flickr
| January 27, 2016
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Capitalist fright: Stock prices collapse as 2016 begins

Photo: Ahmad Nawawi/flickr

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Start with money: bank loans and cash from family or other sources. For a firm or business, this represents its capital.

Use the capital to employ people to make a product or provide a service and sell it for more money -- i.e. profit -- so the capital grows.

As capital grows, what is owned by capitalists represents equity, and this ownership capital can be sold in shares on the stock market.

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