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

Pay special attention to capitalization, enjambment, line breaks, and punctuation. —PC Magazine, 19 June 2025

The play, which recouped its $9.5 million capitalization in just over seven weeks, also hit the highest average ticket price of its run with $347 and played to more than 100 percent capacity. —Caitlin Huston, HollywoodReporter, 10 June 2025

While most tax provisions were focused on individuals, businesses were likely cheering modifications to the capitalization requirement for research and experimental (R&E) expenditures. —Kelly Phillips Erb, Forbes.com, 17 May 2025

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

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