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

Investment

Scenario:

Looking at the present market situation, we should consider opportunities that would enable us to become a more attractive destination for investors.

Response:

If we recapitalize, it could enhance our company’s image and make it more attractive to potential investors.

Banking

Scenario:

With the present economic conditions, the bank's liquidity is going to be a critical issue. We ought to think about how we could strengthen our financial position.

Response:

I agree, we should consider a recapitalization plan for the bank to increase its cash flow and boost its financial security.