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

For starters, fans pointed to the strange capitalization of the song’s title across all streaming services. —Stephen Daw, Billboard, 19 Apr. 2024

His team expects yield rises to be the most pronounced in Seattle and San Francisco, which signals greater risk: When capitalization rates rise, property values fall. —Byalena Botros, Fortune, 9 Apr. 2024

Its lack of capitalization is symbolic of their unit: detailed, rebellious to the rules of properness, pridelessly equal. —Meagan Jordan, Rolling Stone, 26 Dec. 2023

In the past, an increasing loan balance due to interest capitalization has long been a burden for borrowers. —Rebecca Safier, wsj.com, 6 Sep. 2023

By evaluating different capitalization options and understanding their implications, founders can make strategic financing decisions that support their growth objectives and maximize shareholder value. —Abdo Riani, Forbes, 24 Feb. 2024

In other words, borrowers are charged interest on their interest — a noxious little phenomenon known as capitalization. —The New York Times, New York Times, 12 Jan. 2024

Interest capitalization is when your monthly loan payments don’t cover the interest. —Michelle Singletary, Washington Post, 14 June 2023

Starting to Move With every transaction, the market gets more clarity about the capitalization rate — a measure of the return an investor is willing to do a deal at. —Neil Callanan, Fortune, 9 Feb. 2024

Word History

Etymology

capitalize + -ation

First Known Use

1852, in the meaning defined at sense 1a

Phrases Containing capitalization

• market capitalization

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