capitalization

noun

cap·​i·​tal·​i·​za·​tion ˌka-pə-tə-lə-ˈzā-shən 

ˌkap-tə-

1

a

: the act or process of capitalizing

b

: a sum resulting from a process of capitalizing

c

: the total liabilities of a business including both ownership capital and borrowed capital

d

: the total par value or the stated value of no-par issues of authorized stock

2

: the use of a capital letter in writing or printing

Examples of capitalization in a Sentence

Recent Examples on the Web

Jacob believed that the capitalization of common nouns was an inorganic import and did away with it, a choice that inspired parodies in the German press. —Jennifer Wilson, The New Yorker, 4 Nov. 2024

Value and large capitalization stocks fell less than growth and small capitalization stocks. —Brendan Ahern, Forbes, 31 Oct. 2024

The capitalization of the specific letters in the title — KIM and YE — could reference Kim Kardashian and her ex-husband (and longtime Swift foe), Ye, formerly Kanye West. —Keith Caulfield, Billboard, 18 Aug. 2024

Growth and large capitalization stocks outperformed value and small capitalization stocks. —Brendan Ahern, Forbes, 29 Oct. 2024

Word History

Etymology

capitalize + -ation

First Known Use

1852, in the meaning defined at sense 1a

Phrases Containing capitalization

• market capitalization

Legal Definition

capitalization

noun

cap·​i·​tal·​i·​za·​tion ˌka-pət-ᵊl-ə-ˈzā-shən, -ᵊl-ī- 

1

: the act or process of capitalizing

capitalization of earnings

2

: a sum resulting from a process of capitalizing

especially : paid-in capital at capital

inadequate capitalization

3

: total capital liabilities of a business including both equity capital and debt capital

Note: Equity capital is considered a liability because the investors may recall some or all of it (as by redeeming stock). Inadequate capitalization of a business is considered by courts in cases dealing with equitable subordination of creditors or piercing the corporate veil.

4

: the total par value or the stated value of no-par issues of authorized capital stock