Decapitalization

The distribution of a corporation’s profits to shareholders in the form of an extraordinary dividend or share buy-back from accumulated profits. – The (rapid) sale of parts of the assets – from experience mainly patents – by a joint-stock company and distribution of the proceeds to the shareholders. This is usually done in order to no longer be desirable in connection with a planned hostile takeover (to become stale). – See mergers and acquisitions, poison pill, macaroni defense, asset divestiture.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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