The word "recapitalise" is spelled with a "c" instead of a "k" because the root word, "capital," derives from the Latin word "caput," meaning "head." In IPA phonetic transcription, "recapitalise" is pronounced /riːˈkæpɪtəlaɪz/. The stress is on the second syllable, which is pronounced "kap." The "c" is pronounced as a voiceless velar fricative /k/ and the final "ise" is pronounced as a diphthong /aɪz/. This word means to strengthen a company's financial position by increasing its capital reserves.
Recapitalise is a verb that refers to the action of restructuring a company's capital by injecting additional funds or assets into it. This process aims to stabilize or strengthen the financial position of the organization. Recapitalisation is often undertaken when a business is encountering financial difficulties or facing a significant crisis.
The term recapitalise can also be used to describe the conversion of a company's debt into equity. This may involve issuing new shares to existing creditors or lenders, which allows them to become partial owners of the company. By doing so, the company reduces its debt burden, as well as the associated interest payments, and provides an opportunity for the business to recover and improve its overall financial health.
Additionally, recapitalising can involve a change in the ownership structure of a company. This process may involve the introduction of new investors or shareholders who inject fresh capital into the business. These new investors may purchase existing shares from current shareholders or subscribe to new share offerings, resulting in a change in the ownership distribution and potentially a new governance structure.
Overall, recapitalisation is a strategic financial maneuver undertaken by companies to address financial challenges, reduce debt, attract new capital, or enhance the ownership structure, with the ultimate goal of restoring stability, profitability, and sustainability to the organization.
The word "recapitalise" is derived from the combination of two words: "re" and "capitalise".
The prefix "re" is derived from the Latin word "re-", which means "again" or "back". It indicates repetition, restoration, or return to a previous state.
The verb "capitalise" is derived from the word "capital", which comes from the Latin word "capitālis", meaning "of the head" or "principal". Over time, it has come to refer to money or financial resources.
Therefore, "recapitalise" combines the prefix "re-" and the verb "capitalise", creating a word that means "to provide additional capital or restore financial resources, often to a business or organization". It implies an action of injecting funds or resources to strengthen the financial position or solvency of a company or institution.