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Business Essentials
Published in Leonard L. Grigsby, Power Systems, 2012
Financial capital is money available for funding a business. The sources of financial capital are owners and lenders. Financial capital provided by owners is called owner’s equity, often shortened to equity. Financial capital provided by lenders is called debt. All sources of equity and debt are called the capital structure of a company. Both the equity (e.g., common stock) and debt (i.e., bonds) of a company are typically valued by markets. The value of the total capital structure of a company is equal to the value of equity plus the value of debt.
Aspects of a policy architecture for the fourth industrial revolution
Published in Jon-Arild Johannessen, Automation, Innovation and Economic Crisis, 2018
An active focus on the three elements – the democratization of economic life, economic equalization and control over one’s daily life – will counterbalance one of the greatest financial consequences of globalization: namely, the centralization of financial capital (Harvey, 2007; Mason, 2015). The centralization of financial capital is characterized by acquisitions, mergers, mergers of both finance centres and centres for managing real capital (Avent, 2016; Bolanski & Chiapello, 2017).
Domain modelling of the financial system
Published in Enterprise Information Systems, 2022
The official appellation for stocks are equities, which are one kind of financial securities. The existence of stocks is used to represent the fractional ownership of a particular company or enterprise. For instance, when you hold a share of Tencent, you are one of the shareholders of Tencent. That is to say, you own part of Tencent. Although this part is tiny small, since Tencent has issued several trillion shares of stocks. The main purpose for companies or enterprises to issue stocks is to raise money, which can also be seen as to increase financial capital. As a stockholder of one company, you can share its operation profits legally. In addition, you have the right to claim on its financial assets according to the number of stocks you hold. Profits of listed companies can be divided into two parts. One is in the form of dividend paid out to shareholders. The remaining part is retained earnings. This part is taken to supplement financial capital or explore new businesses.