Definition Of Fiduciary Capitalism

Capitalism definition is an economic system characterized by private or corporate ownership of capital goods by investments that are determined by private decision and by prices production and the distribution of goods that are determined mainly by competition in a free market.

Definition of fiduciary capitalism. An era of fiduciary capitalism could shape the global economy for many years as did the era of finance capitalism that preceded it. The production of goods and services is based on supply and demand in the general market. Under this definition stakeholder capitalism involves growing the pie creating value for both shareholders and stakeholders. Typically a fiduciary prudently takes care of money or other assets for another person.

The rise of fiduciary capitalism chronicles the rise of fiduciary institutions primarily public and private pension funds which now own almost 50 percent of the equity of american corporations. A capitalist model in which corporations are influenced and guided by shareholders particularly large institutional shareholders such as pension funds and mutual funds that act on behalf of many smaller investors. One often in a position of authority who obligates himself or herself to act on behalf of another as in managing money or property and assumes a duty to act in good faith and with care candor and loyalty in fulfilling the obligation. But if the financial sector triggers another episode of global instability and another round of bailouts then more regulation and another step toward utility status for financial services will almost certainly be the result.

Legal definition of fiduciary entry 1 of 2. One as an agent having a fiduciary duty to another see also fiduciary duty at duty fiduciary relationship compare principal. Relating to the responsibility to take care of someone else s money in a suitable way. Evidence suggests that such win win outcomes are not wishful thinking.

Likewise financial advisers financial planners and asset managers. Capitalism is an economic system in which capital goods are owned by private individuals or businesses. A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties.