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See allSimplified etymology
Capital entered English in the Middle English period from Latin caput, “head,” and first meant “relating to the head or top.” This developed into senses such as a capital letter and the chief city of a country. The financial sense, recorded from the mid-16th century, arose from capital stock, meaning a trader’s or company’s principal or original funds.
Etymology
From Middle English capitale, partly from Old French capital and partly from Late Latin capitellum (“capital or chapiter of a column”), a form of Latin capitulum (“head-like object or structure; chapter”) (whence English capitulum, chapter, and the synonym chapiter (“uppermost part of a column”)), from caput (“head”) + -ulum (diminutive suffix). Doublet of caddie, cadel, cadet, capitellum, and caudillo.