noun | \ ˌka-pət-ᵊl-ə-ˈzā-shən, -ᵊl-ī- \ | cap·i·tal·i·za·tion
: the act or process of capitalizing capitalization of earnings
: a sum resulting from a process of capitalizing; especially : paid-in capital at capital inadequate capitalization : paid-in capital at capital inadequate capitalization
: total capital liabilities of a business including both equity capital and debt capital
Note: Equity capital is considered a liability because the investors may recall some or all of it (as by redeeming stock). Inadequate capitalization of a business is considered by courts in cases dealing with equitable subordination of creditors or piercing the corporate veil.
: the total par value or the stated value of no-par issues of authorized capital stock