capital increase
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capital increase
A measure in which a corporation increases its equity capital by issuing new shares or increasing the nominal value of existing shares.
Das Unternehmen kündigte eine Kapitalerhöhung an, um die geplante Expansion zu finanzieren.
The company announced a capital increase to finance the planned expansion.
This word is a clear example of a German compound word. It consists of 'das Kapital' (capital) and 'die Erhöhung' (increase). So the meaning is literally the increase of a company's capital.
Die Aktionäre müssen der geplanten Kapitalerhöhung noch zustimmen.
The shareholders still have to approve the planned capital increase.
'Kapitalerhöhung' (capital increase) is a technical term from business and finance. You mainly find it in business news, annual reports, and specialist articles.
Der Finanzvorstand erklärte in der Pressekonferenz die Details der Kapitalerhöhung.
The chief financial officer explained the details of the capital increase at the press conference.
In connection with 'Kapitalerhöhung' (capital increase), verbs are often used that describe a formal process. Typical formulations are 'eine Kapitalerhöhung beschließen' (to approve a capital increase), 'durchführen' (to carry out), or 'ankündigen' (to announce).
Der Vorstand plant, eine Kapitalerhöhung durchzuführen, um neue Fabriken zu bauen.
The executive board plans to carry out a capital increase in order to build new factories.
IPO
'Börsengang' and 'Kapitalerhöhung' both have to do with companies, shares, and new money. A 'Börsengang' is the step in which a company offers shares on the stock exchange for the first time. A 'Kapitalerhöhung' means that a corporation increases its equity capital, for example by issuing new shares. This can happen after an IPO, but it does not have to be the first step onto the stock exchange. The words can be confused because in both cases shares may be issued. The most important difference is: 'Börsengang' emphasizes the first entry onto the stock exchange, while 'Kapitalerhöhung' emphasizes the increase in capital.
Die Firma plant eine Kapitalerhöhung, weil sie neue Maschinen kaufen will.
The company is planning a capital increase because it wants to buy new machines.
Der Börsengang des jungen Unternehmens wurde in den Nachrichten viel besprochen.
The young company's IPO was widely discussed in the news.