Capital Reduction

The process of decreasing a company's shareholder equity through share cancellations and share repurchases. The reduction of capital is done by companies for numerous reasons including increasing shareholder value and producing a more efficient capital structure.

After a capital reduction, the number of shares in the company will decrease by the reduction amount. In some capital reductions, shareholders will receive a cash payment for shares cancelled - but, in other situations, there is minimal impact on shareholders.


Investment dictionary. . 2012.

Look at other dictionaries:

  • capital reduction — reduction of a business equity …   English contemporary dictionary

  • capital reduction — (decrease in value) Euroclear Clearing and Settlement glossary Reduction of the share capital and face value of a single share. The number of the circulating shares remains unchanged. This may include a capital pay out to shareholder. Euroclear… …   Financial and business terms

  • capital reduction — (decrease in value) Reduction of the share capital and face value of a single share. The number of the circulating shares remains unchanged. This may include a capital pay out to shareholder …   Euroclear glossary

  • capital reduction — See: reduction of capital …   Accounting dictionary

  • capital — cap·i·tal 1 adj [Latin capitalis, from caput head, a person s life (as forfeit)] 1 a: punishable by death capital murder b: involving execution a capital case 2 [Medieval Latin capitalis chief, principal, from Latin …   Law dictionary

  • Reduction d'ISF pour investissement en PME — Réduction d ISF pour investissement en PME L article 16 de la loi TEPA du 21 août 2007 a créé une réduction d ISF en cas d investissement dans les PME non cotées. La réduction est de 75% des sommes investies. Elle est plafonnée à 50 000 €.… …   Wikipédia en Français

  • réduction — [ redyksjɔ̃ ] n. f. • fin XIIIe « rapprochement »; lat. reductio, de reducere → réduire I ♦ (XIVe) Opération qui consiste à remettre en place (un os luxé, fracturé; un organe déplacé). Réduction d une articulation luxée. Par ext. Réduction d une… …   Encyclopédie Universelle

  • reduction of capital — a company s capital may be lawfully reduced in two ways: (1) by extinguishing or reducing the liability of its members on any uncalled capital; or (2) by repaying to them the nominal value of their shares. Where a company has suffered losses, it… …   Law dictionary

  • capital redemption reserve — Under Chapter VII of Part V of the Companies Act 1985, a company can redeem shares which are issued as redeemable shares by repaying the nominal value to the shareholder, whereupon the shares are cancelled. Redemption must normally be from… …   Law dictionary

  • Reduction du temps de travail — Réduction du temps de travail La réduction du temps de travail est une tendance générale à la réduction du temps de travail annuel en Europe comme en Amérique du Nord à partir de la moitié du XIXe siècle. La notion de temps de travail… …   Wikipédia en Français

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