Information > Financial Terms > This page

Floating Capital
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

Capital invested in current, as distinguished from fixed, assets.  Economists refer to floating and circulating capital as that which is constantly being turned over by sale, i.e., capital used for trading purposes.  John Stuart Mill wrote that floating capital "does its work not by being kept, but by changing hands."  Floating capital is also known as circulating capital and is equivalent to WORKING CAPITAL.

Back to Information