capitalize

capitalize definition - business

capitalize

  1. To calculate the current value of a future stream of earnings or cash flows. For example, to calculate the current price at which rental property should sell, a financial analyst must capitalize the interest payments and principal repayment that will be made to the investor.
  2. To issue securities in return for investment capital.
  3. To take advantage of something. For example, a farmer near a city may capitalize on urban growth by selling farmland to developers for a high price.

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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