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capitalization

capitalization

2 5.6
Selling a company's shares to raise money
  • noun
  • /ˌkæpɪtəlɪˈzeɪʃən/
  • Specialized
translation icon : capitalización
  • Cowan, Swain's high-tech clients frequently needed capitalization, and Gennaro helped them find the money.
  • capitalization requirements

Examples

  • The United States accounted for just 12.3 percent of early commitments to the capitalization of the EBRD and for 13.4 percent of total bilateral and multilateral commitments made in 1990.

    Academic text (1992)
  • Keep the chart handy while we figure the capitalization rate on your investment.

  • For the domestic money-center banks, the cost of separate capitalization may lead to job cuts.

    Blog text (11)
  • The company says it is globalizing to strengthen its international position and increase capitalization.

    Academic text (2010)
  • Higher capitalization requirements overall were imposed to discourage risky behavior.

    Academic text (1998)
  • In addition, despite increasing requirements for bank capitalization, scores of privately owned banks found themselves inadequately capitalized when the crisis came.

    Academic text (1998)
  • In the early republic, legislatures tried to impose safeguards against corporate entities by limiting their powers and capitalization.

    Academic text (2017)
  • The startup needed significant capitalization to launch its innovative product and attract investors.

  • Investors carefully examined the valuation, noting the company's capitalization had grown substantially over the past year.

  • During the meeting, the CEO discussed plans for capitalization to finance the upcoming expansion project.

Synonyms

IPO
vscapitalization
53 4.1

An event when a company sells shares to the public for the first time

refers more generally to selling capital stock not only in a first public event
flotation
vscapitalization
  • Specialized
1 7.5

Raising money for a company by selling shares to the public

is limited to selling a firm's capital stock specifically to raise funds
floatation
vscapitalization
  • UK
7.8

Selling a company's shares or bonds to the public for the first time

is broader, covering selling capital stock without requiring a first public offering

Compounds

market capitalization
  • Specialized
7 5.6

The total value of a company's shares when you multiply the current share price by the number of shares

large-capitalization
  • Specialized
7.0

About stocks of big companies worth five billion dollars or more

small-capitalization
  • Specialized
7.9

Of companies worth less than one billion dollars

How Funded

capitalization
  • Specialized
2 5.6
venture capital
  • Specialized
32 4.6
crowdfunding
  • Texting
14 4.2
seed money
10 3.6
bootstrapping
  • Jargon
1 5.6

Surface Forms

Morphology

capitalization = capitalize (semi-transparent) = capital + ize + ation

The connection to 'capital' is clear, but the specific financial meaning may not be immediately obvious.

Etymology

Capitalization comes from capital, which comes from an old Latin word caput meaning 'head' and later 'money' or 'resources'. That is why one meaning of capitalization is the act of giving a company money, often by selling shares, so it can grow.