capitalization (cap)

Definition 1

Accounting: Recording of a cost as a fixed asset (written off as depreciation over several accounting periods) instead of an expense (charged off against earnings in one accounting period).

Definition 2

Corporate: Conversion of the retained earnings of a firm into capital through a new issue of stock.

Definition 3

Finance: Structure and amount of long-term equity and debt capitals of a firm expressed as percentage of the total (equity and debt) capital.

Definition 4

Leasing: Conversion of an operating lease into a capital lease by classifying the leased asset as a purchased asset, and showing the lease obligations as loan on the books of the lessee firm.