DEBT REFINANCING Definition

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DEBT REFINANCING involves raising new money to repay existing debt. It is often done and should not be confused with debt restructuring, a more fundamental process in which a borrower changes the structure of its debts (this usually happens when a borrower is unable to meet it's obligations; this may involve a reorganization of its liabilities, for instance by converting debt into equity. Debt rescheduling refers to a delay in the repayment of a debt, usually applying to both interest and principal payments, and can involve a renegotiation of the terms of the debt.

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RESIDUAL OWNERSHIP see RESIDUAL EQUITY THEORY.

STOCK SPLIT is the issuance of a substantial amount of additional shares, thereby reducing the par value of the stock on a proportionate basis.

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