Capitalization rateThe rate of interest used to calculate the present value of a number of future payments.
Recapitalization proposalRecapitalization proposal
Often 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.
Nasdaq small capitalization companiesNasdaq small capitalization companies
A group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers.
Leveraged recapitalizationLeveraged recapitalization
Often used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub.
Capitalization methodCapitalization method
A 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.
Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.
Further SuggestionsCapitalization Weighted Index
Small capitalization (small cap) stocks
Small capitalization (small cap) fund