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

Value and small capitalization stocks gained more than growth and large capitalization stocks. —Brendan Ahern, Forbes, 19 Feb. 2025

All In: Comedy About Love, the hit Simon Rich play in which a rotating cast of stars read-performed the author’s comic stories, recouped its Broadway capitalization before playing its final performance on Sunday, February 16 at the Hudson Theatre, producers announced. —Greg Evans, Deadline, 18 Feb. 2025

The show recouped its capitalization and announced a return engagement next season. Operation Mincemeat: A New Musical played one preview performance last week at the Golden Theater, and went on despite having an unlit marquee as a result of President Trump’s tariffs. —Caitlin Huston, The Hollywood Reporter, 18 Feb. 2025

Most notably, Romeo + Juliet recouped its entire $7 million capitalization during its run — a rare industry feat. —Dave Quinn, People.com, 17 Feb. 2025

Word History

Etymology

capitalize + -ation

First Known Use

1852, in the meaning defined at sense 1a

Phrases Containing capitalization

• market capitalization

Rhymes for capitalization

• acclimatisation
• acclimatization
• acidification
• actualization
• annualization
• autocorrelation
• autoregulation
• beatification
• beneficiation
• biodegradation
• biotransformation
• bureaucratization

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