cap·​i·​tal·​i·​za·​tion ˌka-pə-tə-lə-ˈzā-shən How to pronounce capitalization (audio)
: the act or process of capitalizing
: a sum resulting from a process of capitalizing
: the total liabilities of a business including both ownership capital and borrowed capital
: the total par value or the stated value of no-par issues of authorized stock
: the use of a capital letter in writing or printing

Examples of capitalization in a Sentence

Recent Examples on the Web Similar to accommodation responses, an active-constructive response to capitalization is characterized by enthusiasm, support and genuine interest and has the most positive impact on relationship satisfaction. Mark Travers, Forbes, 13 Nov. 2023 This video is currently not available For many student-loan borrowers, interest capitalization has been the bane of their existence. Michelle Singletary, Washington Post, 30 Aug. 2023 That downturn has continued; the total capitalization of new stock in the first quarter of 2023 declined by 60% relative to last year, reported CRSP. Nicole Goodkind, CNN, 9 June 2023 Such policies typically provide protection from financial losses resulting from inaccuracies in areas like financial statements, material contracts, material customers, the operations of the business, the capitalization of the company and compliance with laws. David Smagalla, WSJ, 1 Nov. 2023 The project’s title is lowercased intentionally to address the hierarchies that capitalization can reinforce in our culture. Chadd Scott, Forbes, 22 Feb. 2023 Overall, the firm expects capitalization rates (which is calculated as the ratio between annual rental income to its current market value) to remain poor, with only Austin and Houston forecasted to see a net increase in capital values over the next four years. Alena Botros, Fortune, 24 Oct. 2023 But the one about interest capitalization in effect now is significant. Michelle Singletary, Washington Post, 30 Aug. 2023 Reducing instances of interest capitalization can help prevent your student loan balance from ballooning. Rebecca Safier,, 6 Sep. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'capitalization.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History


capitalize + -ation

First Known Use

1852, in the meaning defined at sense 1a

Time Traveler
The first known use of capitalization was in 1852

Dictionary Entries Near capitalization

Cite this Entry

“Capitalization.” Dictionary, Merriam-Webster, Accessed 30 Nov. 2023.

Legal Definition


cap·​i·​tal·​i·​za·​tion ˌka-pət-ᵊl-ə-ˈzā-shən, -ᵊl-ī- How to pronounce capitalization (audio)
: the act or process of capitalizing
capitalization of earnings
: a sum resulting from a process of capitalizing
especially : paid-in capital at capital
inadequate capitalization
: 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.

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

More from Merriam-Webster on capitalization

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