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 real estate investment, 'capital call' refers to the demand for additional funds from investors to cover unexpected expenses or opportunities. A real estate developer might announce, 'Due to rising costs, we're initiating a capital call to complete the project.'

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.