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INCREASING CAPITAL BY DEBT CONVERSION OR BY MERGER AND ABSORPTION

Keywords: capital , increasing , debt conversion , merger , absorption

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Abstract:

Increased capital of an enterprise is a strategic decision made possible by the following ways: new consideration in money or in kind; incorporation of reserves, revaluation of assets; incorporation or undistributed profits of the first issue, debt conversion, the conversion into shares of the founders or dividend payments in shares of the company, merger or acquisition. Whatever routes are selected, they must ensure autonomy and balance the long term. Increasing social capital is a means of financing through equity, and self. The difference is that while self-financing is an internal effort made by the company's own, and the capitalization of part of the profit growth is a capital funding through its own funds brought from outside the company by shareholders.

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