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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The court noted that this analysis was basically an accounting for loss in income, although both appraisers had testified that the income capitalization method was not appropriate.
The lower court concluded that the 2005 sale was not of "any probative value" in determining the fair market value of the fee-simple interest in the property and that it was proper to disregard the actual rent in arriving at a value using the income capitalization method.
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.
A valuation analyst will use the yield capitalization method when a private company's income (however defined) is expected to change at a non-consistent rate in the future.
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.
Two methods are commonly used: the direct capitalization method and the yield capitalization method.
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.
As an alternative to the above capitalization method, UCR provides a simplified method for adding these costs to inventory.
The income capitalization method values income-producing property by estimating the present value of anticipated future cashflows.
Key words: OMIS, knowledge capitalization, capitalization method