Capital is key to any financial institution. Companies in other industries need capital to buy property and production equipment. For financial institutions, the primary function of capital is to cover unexpected credit and market risks losses, because risk of such losses inevitably accompanies...

Capital matters to most corporations in free markets, but there are differences. Companies in non‐financial industries need equity capital mainly to support funding to buy property and to build or acquire production facilities and equipment to pursue new areas of business. While this is also...