active capital
- noun
- Specialized
:
capital activo
- The company raised funds quickly because it had enough active capital to invest in new projects.
Examples
-
Investors prefer businesses with active capital since that indicates liquidity and readiness for market opportunities.
-
Having active capital allows a startup to respond rapidly to new trends and demands.
-
"One could argue that had there been an active capital market in late 2008, GM would never have gone to the government." GM also began to clean up its supply chain.
Academic text (2011) -
Even still, the U.S. has huge advantages over other countries: active capital markets, the rule of law, flexible labor laws, favorable demographics, and nearly endless natural resources.
Blog text (20)
Synonyms
3
4.1
Cash or things you can quickly sell without losing much value
How Liquid
∞
1.0
- Specialized
3
4.1
- Specialized
- Specialized
2
8.9
Surface Forms
Morphology
The adjective 'active' (functioning/available) combined with 'capital' (funds/assets) allows a learner to infer a general meaning of 'capital that is currently usable or in operation', so part of the sense is directly compositional. However, the precise financial nuance (readily convertible or liquid as opposed to fixed assets) and the conventional phrasing in finance (e.g. 'working' or 'liquid' capital) may not be fully predictable to a B1 learner, so the item is only partially transparent.
Etymology
Active capital uses a clear image: active means moving or working and capital means money or property. So active capital is money that is 'ready to be used' or quickly turned into cash.