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How do you use Capitalization?
In the business world, companies often need large amounts of cash in order to meet expenses, update facilities, or expand their operations. When there are insufficient funds available to fulfill these needs, these corporations often resort to capitalization in order to raise money. This process involves the sale of a portion of the company's liquid assets. Liquid assets are assets that can be easily converted into cash. These can include surplus raw materials and finished goods, as well as stocks and bonds. The sale of these assets provides the infusion of money needed to meet the company's current needs.
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