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 (see par entry 1 sense 1b(1)) or the stated value of no-par issues of authorized stock see also market capitalization

2

: the use of a capital letter in writing or printing

Examples of capitalization in a Sentence

Recent Examples on the Web

The second is a misdirection technique called veiled capitalization, in which a word that appears to be a common noun is actually a proper one (or vice versa). — New York Times, 24 Sep. 2026

If the gimmick of what goes on there gets you to lean in, Joey’s capitalization of it provides a thematic engine. — Jackson McHenry, Vulture, 23 Sep. 2026

The refinery will likely account for up to 40% of the Lagos exchange’s capitalization when its shares start trading post IPO in November. — Alexander Onukwue, semafor.com, 14 Sep. 2026

The Broadway musical recouped its $17 million capitalization in 2024 (and the tour recouped in 2025), and has since grossed more than $175 million. — Caitlin Huston, HollywoodReporter, 10 Sep. 2026

Word History

Etymology

capitalize + -ation

First Known Use

1832, 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