Total capitalizationThe total long-term debt and all types of equity of a company that constitutes its capital structure.
Capitalization methodCapitalization method
A 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.
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 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.
Said to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive.
Capitalization rateCapitalization rate
The rate of interest used to calculate the present value of a number of future payments.
Further SuggestionsSmall capitalization (small cap) fund
Nasdaq small capitalization companies
Capitalization Weighted Index