finance capital


(economics) money that is used by a business to buy fixed capital or circulating capital. for a very new company or a company expanding extremely quickly, finance capital can sometimes be used to pay workers (before revenues overtake operating costs).

finance capital can be borrowed from a commercial bank, raised by an investment bank (through an issue of stock; see initial public offering) or though a bond issue, commercial paper, or even a repurchase agreement.
the ultimate purpose of stock exchanges like the nyse is to raise finance capital.

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