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

First, check for typos—make sure the promo code is entered exactly as provided, including any capitalization or special characters. —Hannah Chubb, Condé Nast Traveler, 17 June 2026

Musk has proven the power of his RDF before – with one analysis arguing Tesla’s stock market capitalization would be $500 billion lower without Musk at the helm. —Peter Cohan, Forbes.com, 12 June 2026

They are peppered with falsehoods, misrepresentations, insults, praise, self-promotion and erratic capitalizations. —New York Times, 11 June 2026

The Outsiders opened on Broadway on April 11, 2024, and recouped its $22 million capitalization in the week ending December 28, 2025. —Greg Evans, Deadline, 18 May 2026

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