Capitalization method

Capitalization method

A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization.

Capitalization Method

A method of building a portfolio in which one enters a long position on the securities in some benchmark index in proportion to each security's market capitalization. For example, if the benchmark index has three stocks in it (one representing 50% of the capitalization of the index and the other two each representing 25%) 50% of a portfolio using the capitalization method would be composed of the first stock, while the rest would be equally divided between the other stocks.
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In addition, taxpayers can annually elect a "book capitalization method," which may result in capitalization of otherwise deductible repairs if those amounts are capitalized in their books and records [Reg.
In other words, the DCF method here is actually very close to a direct capitalization method, and when it is used in this way it should really be in the second column of Table 1, as the initial income-return requirement is derived from observable transaction data.
A) - Liability capitalization method (excluding 1974 Pension)
The income capitalization method values income-producing property by estimating the present value of anticipated future cashflows.
The selective capitalization method requires prerequisite conditions that are based on such factors as technological feasibility, marketability and usefulness.
Chartered life underwriters (CLUs) know the method as the Human Life Value Concept or the Human Capitalization Method.
This method is used in a direct capitalization method.
Two methods are commonly used: the direct capitalization method and the yield capitalization method.
The judge also agreed with the plaintiff's appraiser's recomputation of the assessments that was based on the income capitalization method and not the sale prices.
Announcement 89-98 delayed the due dates for filing Form 3115 in order to change to a capitalization method of accounting until the transition procedures in Rev.
Congress Joint Committee on Taxation (Joint Committee) of the uniform capitalization method agreement with the IRS.
Key words: OMIS, knowledge capitalization, capitalization method