Floating capital

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Floating capital denotes currency in circulation and assets which can be used for many purposes.[1] It is therefore opposed to "sunk capital", which can be used only for one purpose (for example, a mineshaft).[1]

It comprises the materials and components, constantly supplied in the effecting of all manufactures; currency used for the purpose of transactions, wages and salaries; products in transportation, or in the process of being stored in the prospect of being eventually utilized for this purpose; and the working, circulating capital; rather than that which is fixed as permanently stationary value.

References[edit]

  1. ^ a b N. B. Ghodke (1985). Encyclopaedic Dictionary of Economics - Volume 1. p. 147.