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Capitalization rate |
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Capitalization rateThe rate of interest used to calculate the present value of a number of future payments.Capitalization rate Similar MatchesLeveraged 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 Weighted IndexCapitalization 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. Small capitalization (small cap) fundSmall capitalization (small cap) fundA 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. Total capitalizationTotal capitalizationThe total long-term debt and all types of equity of a company that constitutes its capital structure. 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. Further SuggestionsOvercapitalizationNasdaq small capitalization companies Capitalization table Small capitalization (small cap) stocks Capitalization ratios Recapitalization proposal |
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