Capitalization: A mathematical process for converting net income into an indication of value, commonly used in the income approach to value. The net income of the property is divided by an appropriate (capitalization) rate of return to give the indicated value. (Income ÷ Rate = Value)

 

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Capitalization: Long-term debt, preferred stock and net worth. The loan capital of a community development loan fund; includes that which has been borrowed from and is repayable to third parties as well as . . . View Full Definition

Capitalization Table: 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 ca . . . View Full Definition

Mid-Capitalization (Mid-Cap) Stock: A mid-cap stock is one issued by a corporation whose market capitalization falls in a range between $2 billion and $10 billion, making it larger than a small-cap stock but smaller than a lar . . . View Full Definition

Capitalization Rate: The rate of return a property will produce on the owners investment.

Small-Capitalization Stock: Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion are typically considered small-capitalization, or small-cap, stocks. That . . . View Full Definition

Recapitalization Proposal: Often used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor.

Large-Capitalization (Large-Cap) Stock: The stock of companies with market capitalizations of $10 billion or more is known as large-cap stock. Market capitalization is figured by multiplying the number of either the outstanding or . . . View Full Definition

Nasdaq Small-Capitalization Companies: A group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers.

Market Capitalization: Market capitalization is a measure of the value of a company, calculated by multiplying the number of either the outstanding shares or the floating shares by the current price per share. For . . . View Full Definition

Leveraged Recapitalization: Often 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 sha . . . View Full Definition