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Capitalization Weighted Index |
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Capitalization 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.Capitalization Weighted Index Similar MatchesCapitalization methodCapitalization methodA 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. Capitalization rateCapitalization rateThe rate of interest used to calculate the present value of a number of future payments. Leveraged recapitalizationLeveraged recapitalizationOften 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 tableCapitalization 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. OvercapitalizationOvercapitalizationSaid to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive. Further SuggestionsSmall capitalization (small cap) stocksRecapitalization proposal Capitalization ratios Small capitalization (small cap) fund Total capitalization Nasdaq small capitalization companies |
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