CAPITALIZATION

glossary / CAPITALIZATION

CAPITALIZATION

capitalization, n.

1. The act or process of capitalizing or converting something into capital.

2. The amount or sum resulting from this act or process.

3. The total amount of long-term financing used by a business, including stocks, bonds, retained earnings, and other funds.

4. The total par value or stated value of the authorized or outstanding stock of a corporation.

thin capitalization. The financial condition of a firm that has a high ratio of liabilities to capital.

undercapitalization. The financial condition of a firm that does not have enough capital to carry on its business. [Cases: Corporations 1.4(1). C.J.S. Corporations ¡ì¡ì 9, 13.]

How do bilingual lawyers in China usually translate the term CAPITALIZATION?
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