Shareholder injections refer to additional capital provided by shareholders into a company, while redemptions occur when a company buys back shares from its shareholders.
For example, when a company's cash flow is strained, the owner makes a $50,000 shareholder injection by personally lending capital to the business, which shows up as a long-term liability. Conversely, a shareholder redemption occurs when the company buys back shares from a departing co-founder at an agreed valuation.
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