Investopedia

Continue to Site »

Capital Injection

Filed Under » , , ,
Dictionary Says

Definition of 'Capital Injection'

An investment of capital generally in the form of cash or equity - and rarely, assets - into a company or institution. The word "injection" connotes that the company or institution into which capital is being invested may be floundering or in some distress, although it is not uncommon for the term to also refer to investments made in a start-up or new company.

Investopedia Says

Investopedia explains 'Capital Injection'

Capital injections in the private sector are usually made in exchange for an equity stake in the company into which capital is being injected. However, governments may make capital injections into struggling sectors to assist in their stabilization in the larger public interest; in such cases, a government may or may not negotiate an equity stake in recipient companies or institutions.

Following the unprecedented financial crisis of 2008, the U.S. government - as well as a number of other governments around the world - injected hundreds of billions of dollars into their financial sectors in an attempt to halt the conflagration that was threatening to engulf the global economy.

Articles Of Interest

  1.

    Bailout Acronyms 101

    The subprime meltdown gave rise to a mouthful of financial acronyms. Learn how to sort through this alphabet soup.

  2. The Fall Of The Market In The Fall Of 2008

    How did America's strong economy tumble so quickly? Find out here.

  3. Liquidity And Toxicity: Will TARP Fix The Financial System?

    TARP is the government's attempt to forestall a deep, extended recession. Will it work?

  4. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  5. Investing In IPO ETFs

    Learn the history, rules and risks of investing in IPO exchange-traded funds.

  6. What is a monopoly?

    Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when an industry or sector has only one producer of goods or retailer for ...

  7. How are share prices set?

    When a company goes public though an initial public offering (IPO), an investment bank evaluates the company's current and projected performance and health to determine the value of the IPO for ...

  8. Small Business Financing: Debt Or Equity?

    There are two sources of financing for small businesses: debt and equity financing. This article explains both.

  9. 4 Big Businesses Built With Small Cash

    Subway, Alienware, Ticketsnow and The Body Shop all got started with little start-up capital.

  10. Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center