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Related to capitalization: Capitalization rate


The debt and/or equity mix that funds a firm's assets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The market capitalization of this sector was Rs103,526.7 million and the profit after tax is Rs10,489.59 million.
The sector comprises 11 listed pharmaceutical companies with the paid up capital of Rs 8,516.56 million and market capitalization of Rs 321,854.7 million.
Market capitalization and these assets can act as flexible frameworks to help you understand the industry, but they must remain flexible.
If major national oil companies were listed, their market capitalization would probably be considerably larger than Exxon Mobil's ($ 395 billion).
Prior to requesting, capitalization activities must meet the minimum requirements outlined within DLA's Policy.
"The IFC Capitalization Fund's-landmark capital raising transaction will have a major impact on its regional growth and business development.
However, two sub-sectors - Machinery Marketing and Aviation - did not record a change in market capitalization.
Table 1 shows share of each sector in market capitalization of the whole market.
From a classification point of view, and the nature of capitalization, the majority of the new firms established in 2008, or 82.6% are joint stock public shareholding companies, while 17.3% are limited liability companies.
Using the formula from the previous paragraph ([0.20-0.05]/[1 + 0.05]), the capitalization rate is calculated to be roughly 14%.
The most famous of these controls was the high cost of minimum capitalization required.