Liquid capital

Liquid capital or fluid capital is the part of a firm's assets that it holds as money.^[1] It includes cash balances, bank deposits, and money market investments. Since these assets provide little or no income to the firm, it will ordinarily seek to invest them in activities that offer a higher return on investment, apply them to outstanding debts, or distribute them to the firm's owners.^[1]

References[]

^ ^a ^b Laing, Richard Allen (1919). An Introduction to Economics. pp. 306–309.

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[laing-1] Laing, Richard Allen (1919). An Introduction to Economics. pp. 306–309.

[1]

v t Types of capital
By form	Academic Accumulation of capital Circulating/Floating Cultural Cross-cultural Educational Financial Fixed Human Individual Information Instructional Intangible Intellectual Natural Organizational Physical Political Public Sexual Social Symbolic Venture Working
By term	Liquid (short) vs. Patient (long)
Marxist analytical	Constant Variable Fictitious
Marxist historical	Monopoly Financial capital

Liquid capital

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References[]