capitalization


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Related to capitalization: Capitalization rate

Capitalization

The debt and/or equity mix that funds a firm's assets.

Market Capitalization

The total value of all outstanding shares of a publicly-traded company. The market capitalization is calculated by multiplying the shares outstanding by the price per share. Market capitalization is one of the basic measures of a publicly-traded company; it is a way of determining the rough value of a company. Generally speaking, a higher market capitalization indicates a more valuable company. Many exchanges and indices are weighted for market capitalization. It is informally known as market cap. See also: Large cap, Mid cap, Small cap.

capitalization

The amounts and types of long-term financing used by a firm. Types of financing include common stock, preferred stock, retained earnings, and long-term debt. A firm with capitalization including little or no long-term debt is considered to be financed very conservatively. Also called cap, capital structure, financial structure, total capitalization. See also complex capital structure, large-cap, market capitalization, recapitalization, small-cap.
References in periodicals archive ?
12) This is unfortunate, because a single, unified definition of "asset" for all purposes of the capitalization rules--including the repair regulations as well as the uniform capitalization rules (13)--would further the goal of simplification.
The Treasury conceded the permitted amortization to XYZ's piping system was a compromise, as it later said it would have required capitalization to land.
Although the ANPRM showed the intent of Treasury as to capitalization, it also created uncertainty as to how the issues in this area are to be addressed currently, in light of the fact that the rules are proposed in nature.
In addition to capitalizing interest directly traced to the constructed asset, the regulations would force capitalization of interest associated with other business debt under the "avoided cost" calculation method.
Nonetheless, emboldened by INDOPCO, revenue agents continue to raise capitalization issues outside the narrow scope of that decision.
In the meantime, the intensifying competition from the regional reinsurers, whose capitalization has also been increased in recent years, shall continue to pose challenges to Central Re going forward.
Wells Fargo is significant because it represents the second favorable appellate court decision in recent months dealing with the capitalization of expenditures that have historically been treated as deductible.
First, it unconvincingly proclaimed that capitalization, and not deduction, is the "norm.
Marginal growth in surplus, elevated underwriting leverage and significant net catastrophic exposure exacerbated CIRe's risk-based capitalization in 2005, although the risk-adjusted capitalization, which is measured by Best's Capital Adequacy Ratio, indicates an adequate margin to support its current rating.
Presumably, the financial accounting standard of capitalizing these costs drew the Service's attention, as it provided a convenient argument and numeric support for applying these capitalization principles for tax purposes.
On January 13, 1994, Tax Executives Institute submitted the following comments to the Internal Revenue Service concerning the treatment of certain distribution and handling costs for purposes of the uniform capitalization rules under section 263A of the Internal Revenue Code.
Large capitalization (large cap) growth stocks are securities which fall into the Russell Top 200[R] Index.