Reduction of capital or capital reduction is to decrease
stock
In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...
of a company. During reduction of capital, sometimes the company returns a portion of the stock of a company to shareholder. A private company can reduce its capital in many different ways using new procedures for the reduction of capital under the Companies Act 2006. Before these provisions came in, a court order was required to reduce share capital
See also
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Capital impairment
Capital impairment is the case when the company lost its asset, so the asset is lower than the stock of a company. One way to avoid capital impairment is reduction of capital without any compensation.
See also
*Bankruptcy
*Reduction of capital Re ...
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Capital increase A seasoned equity offering or secondary equity offering (SEO) or capital increase is a new equity issued by an already publicly traded company. Seasoned offerings may involve shares sold by existing shareholders (non-dilutive), new shares (dilutive) ...
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:de:Kapitalerhöhung)
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Dividend
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-in ...
References
{{Authority control
Corporate law
Financial capital
Equity securities