capitalization

capitalization definition - business

capitalization

The amounts and types of long-term financing used by a firm. Types of financing include common stock, preferred stock, retained earnings, and long-term debt. A firm with capitalization including little or no long-term debt is considered to be financed very conservatively. Also called cap, capital structure, financial structure, total capitalization. See also complex capital structure, large-cap, market capitalization; recapitalization, small-cap.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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