This paper covers four key subjects: (1) How to conceptualize social capital? (2) What is the theory of social capital? (3) How to measure social capital? (4) And, it introduces researches on social capital. This article tries to distinguish the concept of social capital from the concept of capital as defined by Marx, the human capital defined by economist and the cultural capital. Nan Lin's theory of social capital stresses that social capital includes social resources which are embedded in interpersonal relations and social networks, and are also an investment in social relations. The propositions regarding social capital are as it follows: The investments in social relations are structurally constrained and contain choices of actions. The more diversified resources individuals can access, the better. There are two dimensions of investment behaviors: the resource capacity of accessed social networks and the resource utilization. Social capital theory is also concerned with the instrumental and expressive return of the network investment. Finally, Nan Lin puts emphasis on the measure of the capability of social capital and uses the method of position generator to collect network data. The position generator uses a series of ranked position to generate social contacts, that is to say individuals who know people who are in that position. Both the creation and Return of social capital are the major parts of social capital analyses.