Question

What is capital reduction account

Answer 1

Capital reduction is the process of decreasing a company's shareholder equity through share cancellations and share repurchases, also known as share buybacks. The reduction of capital is done by companies for numerous reasons, including increasing shareholder value and producing a more efficient capital structure.

Answer 2

Share marketing is one of the most important part of any economic environment.

There are many components and systems related with a particular share marketing system.

Similarly,"Capital Reduction" is a system in the share marketing where a particular company cancels or resales different shares to reduce the allover shareholder rights of that particular company.