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Home > QFINANCE Dictionary > Definition of capital reduction

Definition of

capital reduction

Finance

withdrawal of capital funds the retirement or redemption of capital funds by a company

capital reduction - Related Articles
  • Capital Structure: Implications

    Best Practice

    Knowledge of capital structure theory and practice is important in stock repurchase programs. If the company does not issue new common stock—for example, issuing stock for an acquisition, or as a result of the exercise of options—the repurchase of a company’s own stock is a reduction in equity
    By John C. Groth

  • Capital Structure: Perspectives

    Best Practice

    Capital has three forms: human, tangible, and financial. In this article, we focus on how financing choices influence the cost of financial capital and company value. Capital structure focuses on the sources of financial capital. The choice of structure affects firm value in some economies.1
    By John C. Groth

  • Best-Practice Working Capital Management: Techniques for Optimizing Inventories, Receivables, and Payables

    Best Practice

    the board. But that only attacks the symptoms of working capital issues, not the root causes. A more effective approach is to fundamentally rethink and streamline key processes across the value chain. This will not only free up cash but lead to significant cost reductions at the same time.
    By Patrick Buchmann, Udo Jung

  • Mergers and Acquisitions: Today’s Catalyst Is Working Capital

    Best Practice

    Merger and acquisition (M&A) activities in developed countries once focused on strategic transactions for diversification or for vertical or horizontal integration. While that continues to be the situation in the developing economies, the M&A game in the United States, Western Europe, and Japan is often either to gain balance sheet assets, particularly hoards of underperforming cash, or to improve the acquired company’s working capital management
    By James S. Sagner

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Definitions of ’capital reduction’ and meaning of ’capital reduction’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’capital reduction’ and other financial terms with our online QFINANCE Financial Dictionary.

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