Means long term financial resources, held in the form of financial assets including bonds and shares


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Financial capital


Financial capital means long term financial resources, held in the form of financial assets including bonds and shares. 
Capital also has a much wider range of meanings (including financial capital) depending on the context.
For example, it may include capital goods such as transport infrastructure, and human capital including knowledge, skills and relationships.
Factors of production are resources which are used in production, classically being land, labour, capital and enterprise. 

Capitalism is a relatively free market system based on the concept that the owners of capital are entitled to a reward for putting their capital at risk.
More about economic structures
free market is an economy - or part of an economy - where resources are allocated by the market by means of the market mechanism.
The market mechanism is the interaction of demand and supply, resulting in an equilibrium quantity and price being set by the market.
When demand exceeds supply, market prices are likely to rise.
When supply exceeds demand, market prices are likely to fall.
When demand and supply are equal, market prices are likely to remain stable. 
Regulation is the official control of markets (or of other activities) usually by a system of rules, often including primary or secondary legislation. 
A mixed economy is an economy where resources are allocated by both the government and by the market mechanism. 
The private sector is the part of the economy which is not owned or controlled by the government, and consists of organisations established to make a profit. 
The public sector is the part of the economy comprising the government, and other governmental organisations.
The third sector is the part of the economy comprising non-governmental non-profit-making organisations. The other two sectors being the government (public sector) and business (private sector).
Nationalisation is the transfer of a business from private ownership to national public ownership.
Privatisation can mean either 
(1) The transfer of a business or an activity from state ownership and control into ownership by the private sector. 
(2) A corporate privatisation, which is a transfer of ownership from public equity markets (the stock exchange) to private equity ownership.
Share capital is money invested by the owners of the company (shareholders).
For the protection of the creditors of the company, the company is not normally allowed to pay out the share capital to the shareholders.
This is an expression of the principle of mandatory capital conservation by companies, for the protection of their creditors.
Stakeholders are all the people who have a legitimate interest in an organisation's activities, including shareholders but also covering a much wider group of interest holders. 
One important group of stakeholders are lenders - also known as debt investors.
Debt investors in organisations
loan is a borrowing (liability) for the borrower, and an investment (asset) for the lender.
A bond is a formal debt investment, usually tradeable, issued by a borrowing organisation and bought by a lender (= debt investor).
Documentation is the formal written contract for the debt investment.
Default is (i) part of the documentation of a bond or other debt investment (such as a bank loan) that protects the investor (lender) against the borrower failing to honour the terms of the borrowing - for example, failing to pay interest or principal when it falls due; and also (ii) the failure itself by the borrower, for instance not making repayments when they're contractually committed to.
Covenants are another part of lending and borrowing documentation that protects the lender-investor.
Breach of a covenant by a borrower is normally an event of default that gives additional rights to the lender-investor, for example acceleration.
Credit ratings are an assessment of creditworthiness, made by a separate organisation from the one issuing bonds (or other securities).
Credit rating agencies are specialist bodies that evaluate creditworthiness and publish credit ratings, for example Moody's and Standard & Poor's (S&P).
Responsibilities of companies and their directors
Corporate social responsibility (CSR) is the acceptance by commercial organisations that they have wider ranging and longer term responsibilities, beyond the short and medium term financial interests of financial stakeholders.
Sustainability considers the long term environmental and other effects of an organisation's activities, seeking to ensure that they do not degrade the physical environment or other necessary conditions for well being.
fiduciary duty is a legal duty to act solely in another party's interests. 
A fiduciary is a person who occupies a position of trust in relation to someone else and is required to act for the latter's benefit within the scope of that relationship.
Examples include trustees and company directors. 
Stewardship is the fundamental fiduciary duty of company directors, to safeguard and administer the property belonging to a company, on behalf of its shareholders.
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