Payroll Dictionary
Recapitalization
A recapitalization is an internal reorganization--that is, a rearrangement of the capital structure of a corporation by changing the kind of stock or the number of shares outstanding or by issuing stock instead of bonds, or vice versa. As distinguished from most other types of reorganization, a recapitalization involves only one corporation and is usually accomplished by the surrender by shareholders or bondholders of their securities for stocks or securities of a different type.