Capital Injection

Capital injection refers to the act of adding new equity or capital into a company or financial institution, typically to strengthen its financial position, support growth, or stabilize operations. This process can occur through various means, including issuing new shares, receiving investments from venture capitalists, or obtaining funds from government sources. A capital injection is often essential for businesses facing liquidity issues or those needing additional funds to pursue expansion opportunities. It signals confidence in the business’s potential and helps enhance its balance sheet, enabling better access to loans and improving overall financial stability.