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Capitalization method |
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Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization.Capitalization method Similar MatchesCapitalization ratiosCapitalization ratiosAlso called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow. Nasdaq small capitalization companiesNasdaq small capitalization companiesA group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers. Capitalization Weighted IndexCapitalization Weighted IndexA stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heavist weighting in the index. See also Float, Divisor. Total capitalizationTotal capitalizationThe total long-term debt and all types of equity of a company that constitutes its capital structure. Recapitalization proposalRecapitalization proposalOften used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor. Further SuggestionsSmall capitalization (small cap) fundSmall capitalization (small cap) stocks Overcapitalization Capitalization table Capitalization rate Leveraged recapitalization |
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