How Do You Spell RECAPITALIZATION?

Pronunciation: [ɹɪkˌapɪtəla͡ɪzˈe͡ɪʃən] (IPA)

The word "recapitalization" is spelled /riːˌkæpɪtəlaɪˈzeɪʃən/ in IPA phonetic transcription. This 14-letter word is a combination of the prefix "re-" meaning again, and "capitalization," meaning to raise capital or money by issuing stocks or bonds. The phonetic symbols indicate that the word starts with a long "e" sound, followed by a stress on the "cap" syllable, and ends with the "shun" sound. Proper spelling is important in business and finance, where recapitalization is a frequent concept.

RECAPITALIZATION Meaning and Definition

1. Recapitalization refers to the process in which a company undergoes a significant change in its capital structure, typically by modifying its debt-to-equity ratio or by injecting fresh capital into the business. This strategic financial maneuver is employed by businesses to strengthen their financial position, responding to emerging challenges, or restructuring their operations.

   During recapitalization, a company may choose to issue new shares or sell additional equity to raise funds, which can be used to pay off existing debts, reinvest in the business, or pursue growth opportunities. Alternatively, the company can allocate its resources to repurchasing outstanding shares, thereby reducing the number of shares available and increasing the value of existing shares. Additionally, recapitalization might involve swapping the company's existing debt for new debt instruments with more favorable terms, such as lower interest rates or longer repayment periods.

   Recapitalization is often undertaken to enhance a company's financial stability by reducing the risks associated with high leverage or unsustainable debt levels. It can also be utilized as a defensive measure against hostile takeover attempts or as a means to increase the overall value of the company. By modifying its capital structure, a company aims to improve its cash flow, reduce interest payments, increase its borrowing capacity, or redistribute wealth among shareholders.

   Overall, recapitalization is a strategic financial restructuring that involves altering the composition of a company's capital to adapt to changing circumstances, enhance financial performance, and support long-term growth objectives.

Common Misspellings for RECAPITALIZATION

• recapitilization
• recappitalisation
• Recaptulization

Etymology of RECAPITALIZATION

The word "recapitalization" can be broken down into two parts: "re-" and "capitalization".

The prefix "re-" in English is derived from the Latin prefix "re-" meaning "back" or "again". It is often used to indicate repetition, restoration, or reversal.

The term "capitalization" stems from the noun "capital", which originates from the Latin word "caput" meaning "head". In English, "capital" initially referred to the head or top part of something, but over time its meaning expanded to encompass wealth, principal sum of money, or resources used to generate income.

Therefore, "recapitalization" essentially means "to restore or bring back to a previous or desired capital state". In financial contexts, it refers to the process of changing a company's capital structure, often by issuing new shares or obtaining additional funds, to strengthen its financial position or support other business purposes.

Plural form of RECAPITALIZATION is RECAPITALIZATIONS