Financial capital is the money used to buy stocks and bond
The kind of capital a business employs to invest its funds in the financial market is known as financial capital. Investing typically involves buying stocks and bonds. The primary goal of deploying financial capital is to enrich the firm and provide it with a financial advantage so that the money made can be used for company growth and expansion. Anything that has a monetary worth and is utilized to generate money in the future might be considered a form of financial capital. The two types of financial capital that investors typically face are debt and equity.
Equity refers to a person's direct stake in a company. Investors pay money to the company now in exchange for a future profit share. Debt is riskier than equity capital since it is a legal claim against the borrowing company's assets. Companies obtain funding today, which they later remit with interest.
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