What Is a Capital Injection?
Capital injection means that the parent company of the listed company injects some assets into the listed company. Some powerful shareholders or the parent company have the conditions for speculative capital injection and have a positive effect on the stock price. If the parent company or the major shareholder injects assets into the listed company at a discount, it reflects that the parent company intends to expand the size of the listed company, which will stimulate the stock price. On the contrary, if the parent company injects assets with a high premium, it must be careful, which is not good for listed companies and will bring selling pressure on the stock price.
Injection
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- Funding means
- Capital injection (Asset Injection), a large amount of funds for a project or a cause.
- Capital injection cooperation refers to the fact that a certain partner has invested a certain amount of funds to promote the start-up and development of a project in order to start a certain project.