Respuesta :
Final answer:
Capital formation involves firms raising financial capital through various means such as investors, profits, borrowing, and stock sales.
Explanation:
Capital formation is the process through which firms raise financial capital to invest in projects. This can be achieved through sources such as early-stage investors, reinvesting profits, borrowing from banks or bonds, and selling stock. Financial capital markets play a vital role in transforming money from suppliers to those in need through various financial instruments.
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