Information > Financial Terms > This page Fixed Capital CAPITAL invested in fixed, as distinguished from current, assets; the investment in physical facilities and capacity. Fixed capital is that usually furnished by the stockholders and bondholders, while working capital required for investment in current assets in part may be furnished by banks or through the commercial paper market on short-term paper. Fixed capital is regarded as tied up or locked up and consequently must be furnished permanently or for a long period of time. It is for this reason that stockholders and bondholders contribute fixed capital to a business. Back to Information |