Capitalization ratios

 

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Capitalization ratios

Also 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.



Capitalization ratios

Similar Matches

Leveraged recapitalization

Leveraged 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.


Overcapitalization

Overcapitalization

Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.


Capitalization method

Capitalization 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.


Small capitalization (small cap) fund

Small capitalization (small cap) fund

A mutual fund that invests primarily in mutual fund of companies whose market value is less than $1 billion. Small-cap stocks historically have been more volatile than large-cap stocks, and often perform differently from the overall market.


Nasdaq small capitalization companies

Nasdaq small capitalization companies

A group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers.


Further Suggestions

Total capitalization
Capitalization rate
Capitalization Weighted Index
Small capitalization (small cap) stocks
Capitalization table
Recapitalization proposal


 
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