recapitalization

Vocabulary Word

Definition

'Recapitalization' is when a company changes its financial structure. To do this, it can sell more stocks or bonds, or alter what it owes. It's a bit like rearranging your furniture to make your room work better.

Examples in Different Contexts

In impact-driven enterprises, 'recapitalization' can reinforce financial resilience. An impact enterprise leader might declare, 'Through thoughtful recapitalization, we can bolster our economic sustainability and continue to drive meaningful social change.'

Practice Scenarios

Business

Scenario:

We're facing serious debt issues and need to reconsider our financial structure. I'm open to suggestions.

Response:

Yes, a recapitalization strategy could help us offset our debts by selling off more shares to investors.

Tech

Scenario:

The cloud services project's revenue isn't meeting our expectations. We must find a way to alleviate our financial burden.

Response:

Addressing the issue might require a recapitalization by issuing more debt securities to sustain our cloud services project.