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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 MatchesRecapitalization 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. 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. Capitalization 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. 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. Total capitalizationTotal capitalizationThe total long-term debt and all types of equity of a company that constitutes its capital structure. Further SuggestionsCapitalization ratiosNasdaq small capitalization companies Small capitalization (small cap) fund Small capitalization (small cap) stocks Overcapitalization Capitalization rate |
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