capital increase

Definition

A method used by corporations to raise share capital by giving existing shareholders the right to subscribe to new shares for cash. Alternatively, capital can be raised by exchanging assets such as shares in another company or by raising the par value of existing shares. New investors have the opportunity to become shareholders. Also known as seasoned equity offering.

Use capital increase in a sentence

You should always try and find a way to make the capital increase work in your companies favor if you can.

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The capital increase that was going on was a really cool way to figure out how to do things and how to make them work.

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The capital increase offering by Google spurred many of their current investors to take a much greater stake in the company.

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