The following paper will provide a definition of a Capital Increase and its different applications in Stock Corporations.
Afterwards there will be a closer look at the reasons and motives for a Capital Increase and its consequences for the Shareholders plus some insights in Capital Increases of German Stock Corporations like Deutsche Bank.
The conclusion will give a summary of the results and a personal view about options of Capital Increase in Stock Corporations.
The changing economic conditions, especially as a result of the globalization of the economy, require higher and higher demands at companies to position and maintain on an international and global market environment.
This affects not only those companies that open up new markets but also these ones on home markets who are facing new competition by international competitors.
One of the keys to the entrepreneurial success is the funding of the company, which guarantees the short-term securing liquidity and also the long-term business development.
One of the essential funding opportunities of Stock Corporations is to increase the equity by Capital Increases towards insoles.
A Capital Increase is the essential alternative for the financing by way of credit for a corporation. It increases the share capital and gives the company the opportunity to work with new capital. Though for the investors this often means a dilution of their own rights.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Definition of a Capital Increase
- Capital Increases within a Stock Corporation
- Ordinary Capital Increase
- Contingent Capital Increase
- Authorized Capital Increase
- Capital Increase out of Retained Earnings
- Reasons and Motives for a Capital Increase
- Impact of a Capital Increase for the Shareholder
- Capital Increase within German Stock Corporations
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a comprehensive understanding of capital increases within stock corporations, focusing on their definition, applications, and impact on both the company and its shareholders. It explores the motives behind capital increases and examines their implications for financial stability and growth.
- Definition and types of capital increases
- Reasons and motives for capital increases
- Impact of capital increases on shareholders
- Capital increases in German stock corporations
- The role of capital increases in corporate finance
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter sets the stage by outlining the importance of capital increases in today's globalized economy, highlighting the need for companies to secure funding for growth and development. It introduces the concept of capital increases as a key funding tool for stock corporations.
- Definition of a Capital Increase: This chapter defines the concept of a capital increase, explaining its role in expanding a company's capital base. It distinguishes between different types of capital increases, including ordinary, contingent, authorized, and capital increases out of retained earnings.
- Capital Increases within a Stock Corporation: This chapter delves into the various types of capital increases within a stock corporation, providing detailed explanations of each type and their specific characteristics. It discusses the legal requirements and procedures involved in each type of capital increase.
- Reasons and Motives for a Capital Increase: This chapter explores the various reasons why stock corporations choose to increase their capital. It examines the motivations behind these decisions, such as expanding production capacity, repaying debts, and improving financial stability.
- Impact of a Capital Increase for the Shareholder: This chapter analyzes the impact of capital increases on shareholders, highlighting both potential benefits and drawbacks. It discusses the dilution of existing shares and the potential for increased market value.
Schlüsselwörter (Keywords)
This paper focuses on the concept of capital increases, exploring their definition, types, motivations, and impact on shareholders. Key terms include capital increase, stock corporation, share capital, equity financing, subscription rights, contingent capital, authorized capital, retained earnings, and corporate finance.
- Quote paper
- Anonym (Author), 2015, Potential Application of Capital Increase within German Stock Corporations, Munich, GRIN Verlag, https://www.grin.com/document/320806
