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Capital Injection

/ˈkæpɪtəl ɪnˈdʒɛkʃən/noun
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Capital injection refers to the infusion of additional funds into a business or entity to strengthen its financial position and support growth or recovery. This process often involves equity investments, loans, or government bailouts, providing a vital boost during economic downturns or expansion phases. In today's global economy, it's a key tool in corporate finance for startups seeking venture capital or established firms navigating crises.

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In response to the 2008 financial crisis, the U.S. government's Troubled Asset Relief Program (TARP) injected over $400 billion in capital into banks, which helped stabilize the economy and recover $275 billion in returns by 2010. This massive intervention not only prevented a potential global depression but also set a precedent for future crisis management, influencing how central banks worldwide handle economic shocks.

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