Financial capital is money and intangible entities such as securities that can be converted into money. This can be contrasted with real capital such as machines that have a physical form. Financial capital can be used to acquire real capital. Likewise, financial capital often represents a right to real capital such as company's stock that represents a share of that firm's assets and future earnings. The following are illustrative examples of financial capital.
Annuities | Bank Deposits | Bills of Exchange | Cash | Certificates of Deposit | Commercial Paper | Corporate Bonds | Debenture | Exchange Traded Funds | Financial Derivatives | Foreign Currency Deposit | Futures | Gold | Government Bonds | Line of Create | Loans | Marketable Securities | Mortgage Loans | Mutual Funds | Options | Project Finance | Stocks | Structured Notes | Term Loans |
Debt capital such as a line of credit is considered financial capital. Financial capital can be negative.
Capital
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