capitalization

noun

cap·​i·​tal·​i·​za·​tion ˌka-pə-tə-lə-ˈzā-shən 

ˌkap-tə-

1

a

: the act or process of capitalizing

b

: a sum resulting from a process of capitalizing

c

: the total liabilities of a business including both ownership capital and borrowed capital

d

: the total par value or the stated value of no-par issues of authorized stock

2

: the use of a capital letter in writing or printing

Examples of capitalization in a Sentence

Recent Examples on the Web

Growth and small capitalization stocks outpaced value and large capitalization stocks. —Brendan Ahern, Forbes, 18 Oct. 2024

Financial report The utility’s current debt capitalization — the proportion of debt being used to finance assets — is 63.5%. —Sara Dinatale, San Antonio Express-News, 2 Oct. 2024

And Nvidia’s still up 118% for the year, even after its $300 billion wipeout in capitalization on Tuesday. —Yeo Boon Ping, CNBC, 4 Sep. 2024

Growth and small capitalization stocks outperformed value and large capitalization stocks. —Brendan Ahern, Forbes, 2 Oct. 2024

Word History

Etymology

capitalize + -ation

First Known Use

1852, in the meaning defined at sense 1a

Phrases Containing capitalization

• market capitalization

Legal Definition

capitalization

noun

cap·​i·​tal·​i·​za·​tion ˌka-pət-ᵊl-ə-ˈzā-shən, -ᵊl-ī- 

1

: the act or process of capitalizing

capitalization of earnings

2

: a sum resulting from a process of capitalizing

especially : paid-in capital at capital

inadequate capitalization

3

: total capital liabilities of a business including both equity capital and debt capital

Note: Equity capital is considered a liability because the investors may recall some or all of it (as by redeeming stock). Inadequate capitalization of a business is considered by courts in cases dealing with equitable subordination of creditors or piercing the corporate veil.

4

: the total par value or the stated value of no-par issues of authorized capital stock