감자 (gamja)

A company reduces its share capital, usually by cancelling or merging shares.

감자 (gamja) is a capital reduction: the company reduces its share capital, normally by cutting the number of shares. In a 무상감자 (capital reduction without payment) shareholders get nothing back; it is usually done to clear accumulated losses and is often followed by a share issue.

In a 유상감자 (paid capital reduction) the company pays shareholders for the cancelled shares, returning money to them. A capital reduction without payment is usually a sign of financial trouble.

Also called: share consolidation · reverse split · 무상감자 · 유상감자