cap·​i·​tal·​i·​za·​tion | \ ˌka-pə-tə-lə-ˈzā-shən How to pronounce capitalization (audio) , ˌkap-tə- \

Definition of capitalization

1a : 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 Last week, the producers of the Broadway musical Paradise Square filed paperwork with the U.S. Securities and Exchange Commission to increase its initial capitalization costs from $13.5 million to $15 million. Marc Hershberg, Forbes, 16 May 2022 This model ensures more stability, security and possibly immediate capitalization for the cannabis dispensary. Peter Su, Rolling Stone, 2 May 2022 Today, Amazon’s revenue is nearly five times that of UPS and its stock market capitalization nearly 10 times bigger. Kelly Yamanouchi, ajc, 13 Apr. 2022 That is almost 2% of Coinbase’s fully diluted capitalization of 261.3 million shares. Jacob Wolinsky, Forbes, 1 Sep. 2021 While still the dominant crypto, its market share has also fallen gradually from as much as 70 percent of the total capitalization in early 2021 to 42 percent now. NBC News, 29 Mar. 2022 Interest capitalization stops when the total capitalized interest reaches 10% of the loan’s original principal balance. Mark Kantrowitz, Forbes, 25 Mar. 2022 But if the head is downstyle and your joke works fine without extra capitalization, leave it down. Washington Post, 24 Mar. 2022 If the stock's gains hold on Monday, Peloton could reach the $10 billion market-capitalization threshold. Reuters, CNN, 5 Feb. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'capitalization.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of capitalization

1852, in the meaning defined at sense 1a

History and Etymology for capitalization

capitalize + -ation

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The first known use of capitalization was in 1852

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Last Updated

20 May 2022

Cite this Entry

“Capitalization.” Dictionary, Merriam-Webster, Accessed 24 May. 2022.

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More Definitions for capitalization


cap·​i·​tal·​i·​za·​tion | \ ˌka-pət-ᵊl-ə-ˈzā-shən, -ᵊl-ī- How to pronounce capitalization (audio) \

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

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

More from Merriam-Webster on capitalization

Nglish: Translation of capitalization for Spanish Speakers


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