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

The letters, which were posted to Truth Social, were topped with a gold coat of arms and littered with random capitalizations and confusing turns of phrase. —Antonia Hitchens, New Yorker, 21 July 2025

The additional investment also comes after the production recouped its $9.5 million capitalization in just over seven weeks and has repeatedly broken the record for highest weekly gross of any Broadway play in history, with more than $4 million grossed last week and an average ticket price of $339. —Caitlin Huston, HollywoodReporter, 5 June 2025

Net cash used in investing activities was $28.2 million, primarily for capital expenditures and software capitalization. —Quartz Intelligence Newsroom, Quartz, 14 Mar. 2025

Hunsicker also allegedly created and distributed false capitalization tables that omitted the new share issuances. —Mark Faithfull, Forbes.com, 21 July 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