Definition of capitalization
1a : the act or process of capitalizingb : a sum resulting from a process of capitalizingc : the total liabilities of a business including both ownership capital and borrowed capitald : 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
First Known Use of capitalization
Legal Definition of capitalization
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 Editor's 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
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Spanish Central: Translation of capitalization Nglish: Translation of capitalization for Spanish speakers
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