capital-call

Vocabulary Word

Definition

Think of 'capital-call' as a demand for additional money in business. If you're investing in a project or business, the company might need more money than they initially thought. They'll send a 'capital-call' to ask you for your share of the additional funds.

Examples in Different Contexts

In private equity, a 'capital call' occurs when investors are asked to deposit their promised funds. A fund manager might say, 'We've issued a capital call to finance a new acquisition.'

Practice Scenarios

Creative

Scenario:

Our marketing campaign budget might fall short of expectations. We need to ponder alternatives.

Response:

Given the situation, the most logical step would be a capital-call to our stakeholders.

Business

Scenario:

With the plan to expand our business operations next year, we need to discuss additional funding strategies.

Response:

We should consider issuing a capital-call to our invested parties to manage the expansion costs.