recapitalization
Meaning
the process of changing the way a company is financed, especially by increasing the amount of money it has from shares or bonds.
the act of providing a bank or other financial institution with more capital, especially by a government.
Structure
Usage
the struggling firm underwent a major recapitalization to avoid bankruptcy.
government-led recapitalization of the banks was necessary to restore stability to the financial system.
the deal involves the recapitalization of the company through a new share issue.
Etymology
the term "recapitalization" is a modern financial compound built from classical elements. its core, "capital," traces back to latin caput, meaning "head," which metaphorically extended to signify the principal sum of money, the source or head of wealth. the prefix "re-," also from latin, imparts the sense of repetition or restoration. the suffix "-ization" converts the action into a noun denoting the process. thus, the word's literal logic is "the process of making capital again," perfectly describing the financial restructuring it signifies today.
Analysis
- re: a prefix of latin origin meaning "again" or "back". - capital: from latin capitalis (of the head, principal), derived from caput (head). in this word, it denotes wealth or financial assets. - ization: a noun-forming suffix of greek and latin origin via french, meaning "the process of making or becoming".