What context can I use each word in?
Learn when and how to use these words with these examples!
recapitalization
Example
The company underwent a recapitalization to reduce its debt-to-equity ratio. [recapitalization: noun]
Example
The board of directors decided to recapitalize the company by issuing new shares. [recapitalize: verb]
refinancing
Example
The company decided to refinance its debt to take advantage of lower interest rates. [refinancing: gerund or present participle]
Example
I am considering refinancing my mortgage to get a better interest rate. [refinancing: verb]
Good things to know
Which word is more common?
Refinancing is more commonly used than recapitalization in everyday language. Refinancing is a common practice for individuals and businesses looking to reduce their debt burden or improve cash flow, while recapitalization is a less common corporate action that involves significant changes to a company's ownership structure and control.
What’s the difference in the tone of formality between recapitalization and refinancing?
Recapitalization is typically associated with a formal and corporate tone, while refinancing can be used in both formal and informal contexts, making it a more versatile term.
