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Definition of 'Capitalize'

Capitalize is a term that has multiple meanings in the financial world. In the most basic sense, it means to convert something into capital. This can be done by raising money through debt or equity financing, or by using retained earnings.

Capitalization is also used to refer to the value of a company's assets, or the amount of money that a company has available to invest in its business. The capitalization of a company is calculated by adding together the value of its equity and debt.

Finally, capitalization can also refer to the process of writing a number with a capital letter at the beginning. This is typically done for the first word of a sentence, the names of people and places, and for titles and headings.

Here are some examples of how capitalization is used in the financial world:

* A company raises $10 million in debt financing by issuing bonds. This increases the company's capitalization by $10 million.
* A company uses $5 million of its retained earnings to purchase a new piece of equipment. This decreases the company's capitalization by $5 million.
* The capitalization of a company is $100 million. This means that the company has assets worth $100 million.
* A financial statement is capitalized by writing all of the numbers with capital letters.

It is important to understand the different meanings of capitalization in order to avoid confusion. When reading financial documents, it is important to pay attention to the context in which the term is used in order to determine its meaning.

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