Capital Reduction

Capital Reduction is the opposite concept of capital increase and refers to reducing the total amount of capital.
It is said that the Capital Reduction is carried out for the purpose of company reorganization, division, merger, and business preservatio. But in the stock market, when the accumulated deficit has grown too much and is in a crisis of capital erosion, most of them try to escape the delisting through 'Capital Reduction Without Refund'.
Therefore, it can be very bad news if the disclosure of 'Capital Reduction' is announced.
There are two types of reduction: Capital Reduction Without Refund and Capital Reduction With Refund. I'll explain it in detail below