rhizoverbBeta
DictionarycapitalizationBusiness value
noun

capitalization

The total value of a company's outstanding shares.

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

Etymology
capitalEnglishinvestment value
+izEnglishmake or treat as
+ationEnglishaction 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.