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.
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.
Capitalization ratiosCapitalization 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 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.
Capitalization rateCapitalization rate
The rate of interest used to calculate the present value of a number of future payments.
Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.
Further SuggestionsCapitalization method
Small capitalization (small cap) stocks
Small capitalization (small cap) fund
Nasdaq small capitalization companies