rhizoverbBeta
DictionaryRoot: -ation
English

-ation

an action, process, or result

Forms

  • -ation

Origin

Borrowed through French from Latin -atio, the form of an action ending used with many -are verbs.

Note

English speakers later attached this ending to bases that were not themselves Latin verbs.

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noun

capitalization

The total value of a company's outstanding shares.

The company's market capitalization rose after its share price increased.

Etymology
capitalEnglisha large or uppercase letter
+izEnglishmake, become, or treat in a particular way
+ationEnglishan action, process, or result

Capital names an underlying financial value. Capitalization developed a valuation use, and market capitalization identifies that value through the combined market price of a company’s outstanding shares.

More examples

  • Investors compared the capitalization of the two firms.
  • The index weighted companies by market capitalization.
  • A falling share price reduced its capitalization.

Forms

capitalization

capitalize verb — convert into capital or calculate capital value

Similar words

valuation
Valuation can estimate a company's worth in different ways; market capitalization specifically uses outstanding shares and their price.
revenue
Revenue is income from sales or operations, not the market value of shares.