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

What to Know The capitalization of Moscow Exchange (MOEX) companies fell by $23.7 billion, from 55.04 trillion rubles ($651.8 billion) at Wednesday's close to 53.02 trillion ($627.9 billion) by the end of Friday. —Newsweek Staff, MSNBC Newsweek, 5 Apr. 2025

The company reported a net debt to book capitalization ratio of 26.8% and an interest coverage ratio of 5.39x. —Quartz Intelligence Newsroom, Quartz, 12 Feb. 2025

Deel has also added to its capitalization table with two new major shareholders following a $300 million secondary share sale conducted last year. —Ryan Browne, CNBC, 4 Feb. 2025

Value and large capitalization stocks outperformed growth and small capitalization stocks. —Brendan Ahern, Forbes.com, 15 Apr. 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