Capitalization tableA table showing the capitalization of a firm, which typically includes the amount of capital obtained from each source - long-term debt and common equity - and the respective capitalization ratios.
Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.
Small capitalization (small cap) stocksSmall capitalization (small cap) stocks
The stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any stocks for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate.
Capitalization Weighted IndexCapitalization Weighted Index
A 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.
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.
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.
Further SuggestionsTotal capitalization
Small capitalization (small cap) fund