capitalization

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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 ?
Best believes that the existing level of capital is adequate to support the company's strategy over the next two years; however, if BEST Re is to pursue its aggressive growth strategy as planned until 2007, further funds will be necessary to support the current level of risk-adjusted capitalisation.
Best believes that BIL's profile has been enhanced by its increased capitalisation and enlarged portfolio of business, including both business transferred from syndicate 2987, managed by Brit Syndicates Ltd, and start-up portfolios developed by newly recruited underwriters.
Best's risk-adjusted capital model, capitalisation will be maintained at an excellent level.
The rating reflects Sovag's excellent risk-adjusted capitalisation, very good underwriting performance and very good business position in its niche markets.
Excellent capitalisation--Sovag's risk-adjusted capitalisation is excellent based on A.
These actions reflect improvement in BIL's risk-based capitalisation, improved and excellent prospective financial performance and its rapidly expanding business position.
Excellent capitalisation--Following the increase in paid-up capital to GBP 150 million (USD 225 million) from GBP 70 million (USD 105 million) in November 2002 and the alteration in BIL's plans for 2003, BIL's capitalisation has now been enhanced according to the A.
The current ratings are based on the ZFS's excellent business position in its selected core markets (Switzerland, Germany, Italy, Spain, UK and North America), improving operating performance, restored risk-based capitalisation and re-balancing of the investment portfolio.