pääoma

Pääoma is the Finnish term for capital, a central concept in economics and finance. It denotes assets used to produce other goods or services or to generate wealth, distinct from labor or natural resources. In economic theory, capital is one of the factors of production, together with labor and land, enabling investment and growth. The capital stock grows through investment, returns, and depreciation, and it determines the economy’s future production capacity and income.

Capital can be classified in several ways. Realkapital (physical capital) includes machines, buildings, infrastructure, and other tangible assets used in production. Finanssi- or rahoituspääoma covers financial assets such as money, stocks, bonds, and other instruments used to fund activities. Intangible capital includes knowledge, software, brands, patents, and other non-physical assets that contribute to value creation. Human capital—skills, education, and health—is often treated as a form of capital that affects productivity, though it is sometimes discussed separately.

In accounting and corporate finance, pääoma often refers to the capital invested in a business, including osakepääoma (share capital) and retained earnings (kertyneet voittovarat). The term can also denote the overall capital base used to fund operations, such as the cost of capital or return on capital, which are central in evaluating investments.

Usage and measurement vary by context. In macroeconomics, capital accumulation and the capital stock influence long-term growth. In finance, attention focuses on returns, costs, and risk associated with using capital for investments.