equity injection

USAGE SUMMARY

"equity injection" is correct and usable in written English.
An equity injection is when a company receives an infusion of capital in exchange for issuing shares of its stock. For example, "The company resorted to an equity injection to finance its expansion plans."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

18 human-written examples

Citigroup, which gratefully accepted an equity injection of $7.5bn from Abu Dhabi, spent more than that on buybacks in 2006-7.

The Guardian - Business

The latest figures have surprised economists as they show an acceleration in repayments – called "net housing equity injection" – despite the improvement in the economy.

The Guardian - Money

The billionaire Koch brothers are said to have tentatively agreed to support the publisher Meredith's offer with an equity injection of more than $500 million.

The New York Times

There will be no equity injection into the club, despite Usmanov's offer to write a cheque for £100m if the funds are invested in the team.

Independent

The Bank of England's analysis of lending found there was a net housing equity injection of £6.1bn in the third quarter of last year, up from £5.8bn in the second quarter and £5.3bn in the first quarter.

The Guardian - Business

Austria has offered a €100 billion ($129 billion) package for its banks, which are owed $290 billion by east European borrowers: Erste Bank took up a €2.7 billion equity injection on October 30th.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

42 human-written examples

The equity injections were silly.

The New Yorker

He favored direct equity injections into banks, for instance, before Mr. Paulson did.

The New York Times

You mean when they were handing out debt guarantees and equity injections and so on?

The New Yorker

The equity injections were accompanied by restrictions on executive pay and dividends.

The Guardian - Business

There have been big, poorly timed equity injections into Barclays and Merrill Lynch.

The Economist

Expert writing Tips

Best practice

When describing an "equity injection", specify the source and purpose of the funds to provide context and clarity. For example, "The company received an "equity injection" from venture capitalists to expand its research and development efforts".

Common error

Avoid using "equity injection" when describing debt-based funding. An "equity injection" specifically refers to the exchange of company stock for capital, not loans or other forms of debt.

Linguistic Context

The phrase "equity injection" functions as a noun phrase that identifies the act of providing capital to a company or entity in exchange for equity. This term is commonly used in financial discussions. Ludwig AI states that it is correct and usable in written English.

Expression frequency: Common

Frequent in

News & Media

40%

Formal & Business

30%

Science

15%

Less common in

Wiki

5%

Academia

5%

Reference

5%

Ludwig's WRAP-UP

The phrase "equity injection" is a commonly used term in finance and business, referring to the infusion of capital into a company in exchange for equity. Ludwig AI confirms its correct usage in written English. Analysis of its contexts reveals frequent use in News & Media and Formal & Business settings. Related terms include "capital infusion" and "funding round". When using the phrase, ensure it accurately describes the transaction and is not confused with debt financing. Given its prevalent use in authoritative sources like The Guardian, The Economist, and Forbes, "equity injection" is a reliable and effective term for financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

capital infusion

Emphasizes the act of adding capital, often used interchangeably but can encompass debt as well.

cash infusion

Specifically indicates the addition of cash, narrowing the scope to liquid assets.

capital raise

Highlights the action of obtaining capital, suitable for various funding methods.

capital contribution

Highlights the act of contributing capital to a venture or entity.

funding round

Focuses on the process of raising capital from investors, implying multiple participants.

investment capital

Emphasizes the capital's purpose for investment, rather than general operational use.

recapitalization

Describes a restructuring of a company's capital structure, which may include equity.

financial bailout

Implies a rescue situation through financial support, often from a government or institution.

financial assistance

A broader term that includes various forms of financial help, not exclusively equity.

liquidity boost

Focuses on improving the availability of liquid assets, which may or may not involve equity.

FAQs

What does "equity injection" mean in finance?

An "equity injection" refers to the process where a company receives capital in exchange for issuing shares of its stock. This increases the company's equity base and provides it with funds for operations, expansion, or debt reduction.

How does an "equity injection" differ from a loan?

An "equity injection" involves giving up a portion of ownership in exchange for capital. A loan, on the other hand, is a debt that must be repaid with interest and does not dilute ownership.

What are some alternatives to an "equity injection"?

Instead of an "equity injection", companies can explore options like "debt financing", "venture capital", or "retained earnings" depending on their needs and circumstances.

When might a company choose an "equity injection" over other funding methods?

A company might choose an "equity injection" when it needs capital without increasing its debt burden, or when it believes its stock is undervalued and wants to attract long-term investors. It's also helpful when "traditional loans" are difficult to secure.