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Capitalization rate |
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Capitalization rateThe rate of interest used to calculate the present value of a number of future payments.Capitalization rate 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. OvercapitalizationOvercapitalizationSaid to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive. 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. 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 SuggestionsTotal capitalizationCapitalization table Small capitalization (small cap) fund Capitalization method Small capitalization (small cap) stocks Leveraged recapitalization |
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