Fixed Capital

Categories: Finance,

Fixed capital is a concept from economics, introduced by david ricardo. It refers to any kind of real or physical capital that is not used up in the production of a product and is also not easily moved into the production of a new product. It is contrasted with circulating capital.A business executive who invests in or accumulates fixed capital is tying up money in a fixed form in hopes of making a future profit. Thus, this investment is risky.