Wednesday, 29 July 2015

Capital increase

Carry out the capital increase means determining a change in share capital established at the time of birth of the company.

The ways in which we can realize the capital increase are twofold:

     the company issues new shares;
     now increases the value of the securities already in circulation.

The company intends to proceed with the capital increase has to decide according to which mode to do so, choosing from the following options:

     capital increase in payment: the subscription of new shares is made by payment of a fee.
     scrip: assigning new shares free of charge to existing shareholders.
     capital increase in mixed form.

Generally a company decides to carry out a capital increase to pay because it needs cash to invest or, as a result of financial problems, to replenish the capital.

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