Meaning & Definition of word "Capitalization"

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    Capitalization

    /ˌkæpɪtəlaɪˈzeɪʃən/

    noun:

    • 1. The action of writing or printing in capital letters.
      • Example: The capitalization of the title is incorrect according to the style guide.
    • 2. The total amount of capital that a company has raised through the sale of its stock.
      • Example: The startup achieved a significant capitalization after its successful funding round.
    • 3. The process of converting income into capital or funding.
      • Example: Capitalization of future earnings can be an effective strategy for valuing a business.
    • 4. The arrangement of capital letters in a text or title.
      • Example: Proper capitalization in writing enhances readability.
    • 5. The market value of a company's outstanding shares.
      • Example: Investors often look at a company's capitalization to assess its growth potential.

    Etymology

    The word 'capitalization' is derived from the term 'capital', which comes from Latin 'capitalis', meaning 'of the head'.

    Common Phrases and Expressions

    capitalization rate:

    A ratio that reflects the relationship between the income generated by an investment property and its current market value.

    market capitalization:

    The total market value of a company's outstanding shares of stock.

    capitalization table:

    A chart that shows the equity ownership, the value of equity, and the dilution of different shares in a startup company.

    Related Words

    capitalize:

    To write or refer to something using capital letters.

    capital:

    Wealth in the form of money or assets owned by a person or organization.

    capitalist:

    A person who uses their wealth to invest in trade and industry for profit.

    Slang Meanings of capitalization

    Meaning: Cap

    Example Sentence: Don't cap, you need proper capitalization in your report.

    Meaning: Uppercase flex

    Example Sentence: That document is an uppercase flex with all that capitalization.