CAPITAL INJECTION Meaning and
Definition
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Capital injection refers to the act of infusing fresh funds or capital into a business or organization. It is a financial term commonly used in the context of raising additional funds to bolster the financial standing or support the growth of a company. A capital injection can be provided by various sources such as investors, shareholders, or lenders.
The purpose of a capital injection is to increase the financial resources available to a company, thereby enabling it to expand its operations, invest in new projects, or meet financial obligations. This injection can take several forms, including direct equity investment, loans, grants, or the purchase of bonds or other financial instruments.
A capital injection often occurs when a company is facing financial difficulties or requires additional resources to pursue an opportunity. It can contribute to the stability and survival of a business by increasing its liquidity or allowing it to take advantage of market opportunities.
This injection of capital can have significant impacts on a company's balance sheet, as it increases its assets and potentially reduces its debt or liabilities. It can also influence ownership or control, especially if the capital injection involves the issuance of new shares or dilution of existing shareholders.
Overall, a capital injection provides a vital infusion of funds necessary for a company's growth, stability, or recovery in challenging times, leading to enhanced financial capabilities and potential expansion opportunities.
Common Misspellings for CAPITAL INJECTION
- xapital injection
- vapital injection
- fapital injection
- dapital injection
- czpital injection
- cspital injection
- cwpital injection
- cqpital injection
- caoital injection
- calital injection
- ca0ital injection
- caputal injection
- capjtal injection
- capktal injection
- capotal injection
- cap9tal injection
- cap8tal injection
- capiral injection
- capifal injection
- capigal injection
Etymology of CAPITAL INJECTION
The word "capital injection" is composed of two parts: "capital" and "injection".
The term "capital" stems from the Latin word "capitalis", which is derived from "caput", meaning "head" or "principal". In Latin, "capitalis" referred to anything related to the head, including money or wealth.
The term "injection" originates from the Latin word "injectio", which comes from the verb "injicere", meaning "to throw in" or "to put in". In the context of finance or business, "injection" conveys the idea of introducing or adding something, such as funds or resources, to a specific entity or system.
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