capitalization
the way capital letters are used in writing
The use of capital letters in writing, or the rules that control where capital letters are used.
the financial size or capital value of a company
The amount or value of capital that a company has or is considered to have, especially the value represented by its shares, debt, and other long-term financing.
giving a business the money it needs to start or grow
The process of supplying a business, project, or institution with the money or assets it needs to operate or grow.
recording a cost as an asset instead of counting it as an immediate expense
In accounting, the practice of recording an expenditure as an asset, so its cost is spread over time instead of being treated as an immediate expense.
using a chance or advantage to get a good result
The act of using an opportunity, trend, mistake, or advantage to get a benefit.
- Base: capitalization
- Plural: capitalization, capitalizations
capitalization policy
1Rules for asset costs
company rules about which costs become assets in the accounts
- The finance team revised the capitalization policy for software projects.
- Under the capitalization policy, equipment over $5,000 is recorded as an asset.
- Auditors checked whether the purchase followed the company's capitalization policy.
- The company has a capitalization policy.
- The policy says which costs are assets.
capitalization rate
1Property income yield
a rate used to compare how much income an investment property may produce
- The apartment building sold at a capitalization rate of 6 percent.
- Investors demanded a higher capitalization rate because the property was riskier.
- A lower capitalization rate often means buyers are willing to pay more for the same income.
- The property has a 5 percent capitalization rate.
- Investors compare buildings by capitalization rate.
capitalization table
1Company ownership table
a chart that shows who owns parts of a company
- The startup updated its capitalization table after the funding round.
- Investors reviewed the capitalization table before signing the deal.
- The capitalization table showed how much equity each founder still owned.
- The capitalization table lists the owners.
- The startup changed its capitalization table.
interest capitalization
1Interest added to principal
when unpaid interest is added to the amount you owe
- After the deferment ended, interest capitalization increased her student loan balance.
- The lender explains when interest capitalization may occur.
- Borrowers can sometimes avoid interest capitalization by paying interest while they are in school.
- Interest capitalization made the loan bigger.
- Paying interest early can prevent interest capitalization.
market capitalization
1Company's market value
the total value of all a company's shares on the stock market
- The company's market capitalization passed $1 trillion.
- The index gives more weight to firms with larger market capitalization.
- A falling share price reduced the bank's market capitalization.
- Apple has a very large market capitalization.
- Market capitalization changes when the share price changes.
thin capitalization
1Too much debt financing
when a company has much more debt than equity
- The tax authority applied thin capitalization rules to limit interest deductions.
- Thin capitalization can make a company look riskier to lenders.
- The subsidiary was criticized for thin capitalization because most of its funding came from loans.
- Thin capitalization means the company has too much debt.
- Tax rules may limit thin capitalization.
title capitalization
1Capital letters in titles
the way capital letters are used in a title
- The blog uses title capitalization for all article headings.
- Our style guide explains title capitalization with many examples.
- She changed the heading to match the required title capitalization.
- Check the title capitalization.
- This headline uses title capitalization.