Definitions for

**"capitalization"****Related Terms:**Capitalization of interest, Capitalizing interest, Capitalized interest, Principal and interest, Deferred interest, Interest-only payment, Principal balance, Negative amortization, Remaining balance, Amoritization, Amortization schedule, Original principal balance, Remaining term, Loan principal, Simple interest loan, Loan balance, Amortized loan, Amortization table, Amortization, Negative, Interest-only loan, Balloon loan, P&i, Repayment schedule, Biweekly loan, P & i, Interest only loan, Balloon loans, Additional principal payment, Amortized mortgage, Amortize, Amortization tables, Biweekly payment mortgage, Standard payment calculation, Add-on interest, Balloon mortgage, Balloon, Biweekly mortgage, Monthly payment, Prepayment, Blended payments, Compounded interest, Simple interest, Principal and interest loan, Interest-only, Balloon payment, Initial interest, Total monthly payment, Direct reduction mortgage, Mortgage payment

A loan arrangement whereby you may add unpaid interest to the principal, rather than pay the interest when it is due.

Capitalization occurs when unpaid interest charges are added to the principal balance (the original amount you borrowed), thereby increasing the size of the loan. Interest is then charged on this new larger balance, which now includes both the unpaid principal and the "accrued" interest. If you defer the interest on your Brazos HELP loan, it will be capitalized quarterly and once at repayment. The addition of unpaid interest to the principal balance increases the monthly payment and total repayment amount.

Submenu Adding unpaid accumulated interest to the loan principal. Capitalizing interest increases the principal amount of the loan, and therefore, the total cost of the loan. Capitalizing the interest increases the monthly payment and the amount of money you will eventually have to repay. If you can afford to pay the interest as it accrues, you are better off not capitalizing it. Capitalization is sometimes called compounding.

The process of adding unpaid interest to the principal loan amount, thereby increasing the balance that future interest accrues on, and the total amount to be repaid. To save money, pay interest before it is capitalized.

The act of adding unpaid interest to the principal balance that is owed on a loan. It increases the total amount owed and the monthly payment.

If you choose to postpone paying interest on a student loan while you're in school, the interest may be capitalized, or added on to the principal amount. Capitalization increases the total amount you will repay on a student loan.

When the accrued interest is added to the principal balance, thus increasing your balance owed and basically charging you interest on the interest.

A term used to describe a method of computing interest. To capitalize a loan means to add all interest that has accrued to the principal loan amount. Once a loan is capitalized, the new loan amount (both principal and interest) is the amount interest will accrue on.

Addition of unpaid accrued interest with your capital loan amount by which both Loan amount as well as cost to loan increases.

When a lender accrues interest before the borrower starts repayment, then adds that amount to the principal. This is sometimes called "compounding." Capitalizing increases the total to be repaid and the size of the minimum monthly payment. Students can avoid capitalizing interest by paying interest as it accrues.. Lenders may capitalize no more often than quarterly; the more frequently interest is capitalized, the more quickly it increases.

The process by which interest is added to the principal loan amount if you choose not to make interest payments (when otherwise required) while in school or in forbearance. This process increases the amount that must be repaid and will make your monthly payment larger

The practice of adding interest to the principal or loan amount, instead of paying the interest while in school. Through capitalization, a student can put off payments on an unsubsidized loan until after their class hours drop below half time status, but the amount owed after college will as the interest is accrued on the capitalized interest each month. Capitalization costs you money in the long run.

a multiple of the cash flow generated as profit, interest, etc

Adding unpaid accrued interest to the principal balance. Capitalizing interest increases the principal amount of the loan and the total cost of the loan. This occurs at the end of a deferment, forbearance, or grace period on Unsubsidized Loans, and at the end of a forbearance period on a Subsidized Loan.

The process by which the lender applies accrued interest to the principal of the loan.

The occasion on which accrued and unpaid interest and loan fees are added to the outstanding principal balance of the loan.

If you choose to defer paying interest on your loan while in school, the interest is capitalized or added to the principal.

The interest that accumulated while you were in school that is added to the amount borrowed at periodic intervals.

The adding of unpaid interest to the principal balance. Your unpaid interest the accrues additional interest as part of the loan principal. Capitalization generally happens when your loan enters repayment.

A process of adding unpaid interest to the principal balance of your loan. This will increase the balance due and may increase monthly payments.

An increase in the principal balance of a loan that occurs when a lender adds the interest accrued on the loan to the outstanding principal balance. The more frequently accrued interest is capitalized, the more expensive the loan becomes.

If there is any unpaid interest accrued on a loan at the end of a payment period, the amount is added to the original loan, thus increasing the first balance.

When interest is added to the principal balance of a loan rather than being paid as it accrues; any future interest is then based on the higher loan amount.

Accrued interest is added to the borrower's outstanding principal. Subsequent interest accrues on the new total principal balance, which includes any capitalized interest. The borrower then pays interest on the interest.

Adding unpaid, accumulated interest to the outstanding principal balance of the loan. After adding the interest to the outstanding principal balance of the loan, future interest will accrue based on the new principal balance, which creates a situation where you pay interest on interest.

Unpaid interest added to the principal balance of a loan when a loan enters repayment (e.g., after periods of school, deferment or forbearance). This results in an increase in the size of the loan, and the interest is charged on the new balance. Capitalized interest should not be reported to LRP combined with “accrued interest” since it is included in the principal balance reported by the lender.

Unpaid interest is added to the principal balance of your loan. As a result, you will pay more interest over the life of the loan. Your monthly payment amount may be higher or your repayment period could be longer.

When accrued interest is added to your principal balance.

the process of adding unpaid interest to the outstanding principal balance of a loan. This results in an increase in the outstanding principal balance of the loan and may cause an increase in the monthly payment amount.

The arrangement between borrower and lender whereby interest payments are deferred as they come due and are added to the principal amount of the loan.

The process of adding unpaid interest to the principal balance of an educational loan, thereby increasing the total amount to be repaid.

The process of adding unpaid interest to the principal balance of an educational loan, increasing the size of the loan that must be repaid.

The practice by lenders of adding any accrued (accumulated) and unpaid interest to the principal of a borrower's loan, which increases the loan balance and causes the principal to grow significantly.

The process of adding any accrued and unpaid interest back to the original principal amount borrowed, thereby increasing the principal balance owed.

The practice of adding unpaid interest to the principal balance of a loan, thereby increasing the amount of the loan.

An increase in the principal balance of a loan that occurs when a lender adds the interest accrued on the loan to the outstanding principal balance. The loan becomes more expensive the more frequently accrued interest is capitalized.

Adding costs, such as improvements, to the basis of assets.

Capitalization is the interest that builds up over time and is added to your principal. This is called capitalized interest. This interest increases the total cost of your loan.

Adding unpaid interest to the loan principal. Capitalization increases the principal amount of the loan and its total cost.

Unpaid interest is added to the principal of the loan, increasing the monthly payment and the total balance of the loan.

Adding unpaid interest charges to the principal balance of a loan, thereby increasing the balance due. Capitalization increases the amount of the monthly payments and the total amount repaid over the life of the loan. Students can choose to pay the interest as it accrues, rather than capitalizing it. Our online calculator can help you estimate the cost of an unsubsidized deferment or forbearance.

The addition of unpaid accrued interest to the principal balance of a loan.

Procedure where accumulated interest is added to the Principal Balance. Future interest accumulates on the total. At the borrower's request, HSBC capitalizes interest on Stafford Unsubsidized Loans upon repayment.

The practice of adding interest to the principal, or loan amount, instead of paying the interest while in school. Capitalization eliminates payments while in school, but does increase the amount owed after school.

Addition of unpaid interest to the principal balance of a loan which increases total outstanding principal.

the practice of adding unpaid interest charges to the loan principal, increasing the size of that principal.

When a lender accrues interest before the borrower goes into repayment, then adds that amount to the principal. Sometimes also called "compounding." Capitalizing increases the total to be repaid and the size of the minimum monthly payment. Students can avoid capitalizing interest by paying the accrued interest. Lenders may capitalize no more often than quarterly; the more frequently interest is capitalized, the greater it becomes.

Adding accumulated interest to the loan principal rather than having the borrower make interest payments. Capitalizing interest increases the principal amount of the loan and the total cost of the loan over time.

Addition of the amount of accrued interest to the amount of a deposit.

This option determines if a bank has authorized system-generated transactions at month-end, increasing or decreasing loan principal and variances. A bank would use this to collect delinquent payments through system-generated transactions by either charging delinquent interest and/or escrow to the principal balance and advancing the paid-to-date by the frequency, or taking prepaid principal payments and using these funds for the delinquent payment.

The process of adding unpaid interest to the principal balance of a loan, rather than pay the interest when it is due. If the interest is capitalized it will increase the amount of the monthly payment during the repayment period. This applies to the unsubsidized Stafford loan and most private loans.

The practice of adding unpaid interest charges to the principal balance of an educational loan, thereby increasing the size of the loan. Interest is then charged on the new balance, including both the unpaid principal and the accrued interest. Capitalizing the interest increases the monthly payment and the amount of money you will eventually have to repay. If you can afford to pay the interest as it accrues, you are better off not capitalizing it. Capitalization is sometimes called compounding. See also Unsubsidized Loans.

Capitalization occurs when unpaid interest is added to the principal balance of the loan, thus increasing the amount of the loan, and increasing monthly payments.

**Related Terms:**Capitalisation, Market capitalization, Market capitalisation, Small-cap stocks, Market cap, Shares outstanding, Dilution, Share capital, Equities, Stock split, Outstanding shares, Watered stock, Share split, Reverse split, Split, Capital stock, Stocks, Book value per share, Small-cap, Outstanding stock, Reverse stock split, Issued share capital, Equity, Value stock, Large-cap stock, Price/book ratio, Stock, Diluted earnings per share, Issued capital, Common stock equivalent, Yield advantage, Common stock equivalents, Shares, Share repurchase, Price-to-book ratio, Large cap, Authorised share capital, Value stocks, Stock dividend, Float, Pe ratio, Penny share, Small cap stock, Large-cap, Penny shares, Small cap, Share premium, Additional paid-in capital, P/e, Price/earnings ratio

A term that refers to the total amount of financing or funds that is available...

A company's amount of capital. Usually measured as the sum of a company's market value of equity and debt. Bloopers & Blunders: Rationalizing The Rise In Small-Cap Stock Prices Stock Splits and Capitalization

The division of the money invested in a corporation between equity and debt. It is said that depending on where the company falls in the spectrum between low-debt/high-equity to high-debt/low-equity, this is a reflection of the investment personality for that company. A company with high debt is said to be risky because of its high fixed obligations and a company with low debt may lack growth potential.

The total number of shares issued by a company multiplied by its share price i.e. the total value put on the company by the market. This can also be be applied to a market sector by adding the market caps of all the companies in the sector or, indeed, a market as a whole, by adding the market caps of all the stocks in that market.

The sum of a corporation's long-term debt, stock a... Add a comment

The value or market price of a company, or the money invested in a company. A company's Market Capitalization is the total market value of a company's shares, calculated by multiplying the price per share by the number of shares outstanding.

"Total amount of various securities issued by a corporation. Capitalization may include, preferred and common stock, and surpluses. "

Amount Value of outstanding shares (price * sharesOutstanding).

The basic resources of a company including the owner's equity, retained earnings and fixed assets. One of the "Five C's" of Credit

Total value of outstanding shares (of a company) at current market price.

An imprecise term, usually referring to the amounts received by a corporation for the issuance of its shares. It also may refer to the proceeds of loans to a corporation made by its shareholders.

(Often shortened to "cap") The value of all outstanding shares in a particular company. (See large-cap, mid-cap, and small-cap)

the debt and equity combination that funds a company's assets.

The amount of money that a company has.

A measure of the value of a corporation. It is calculated by multiplying the number of the company's outstanding shares by the stock price. Corporations are often referred to by their level of capitalization such as large cap, medium cap or small cap.

the sale of capital stock

The market value of a publicly-held company. A company's value is determined by multiplying the total number of its outstanding common stock shares by their current price.

Total amount of money invested in a company that may include long-term bonds, debentures or stock.

The aggregate value of a corporation's long-term debt, preferred and common stock accounts or, put another way, funded debt plus shareholders' equity.

Term used to describe a company's permanent capital, long-term debt and equity.

Market value of a company, calculated by multiplying the number of shares outstanding by the price per share. Often referred to as "cap," as in a "large cap stock."

A corporation's total long-term debt and stockholders' equity.

Is a company’s stock price per share multiplied by the total number of shares outstanding. Also known as market cap.

the aggregate stock market price of all a company's ordinary shares or common stock.

A commonly used measure of the size and value of a company. It's calculated by multiplying the current market price per share by its number of outstanding shares.

The value of a fund derived by the multiplication of the fund's share price by the number of outstanding shares. Most often, this is applied in order to determine the value of the specific companies.

The total amount of various securities issued by a corporation.

The sum of a corporation`s stock, long-term debt and retained earnings. It can also be a company`s outstanding shares times its share price - known as market capitalization. If a company has 1,000,000 shares and they are currently trading at $10/share their market capitalization would be $10,000,000.

the amount of money invested in a company or the worth of the bonds and stocks of a company.

The amount of money in the underlying stock of a company.

Calculated by multiplying a company's outstanding shares by the per share market price (market cap, market capitalization).

A term used to describe a company's total value. Capitalization is calculated by multiplying a stock's share price by its number of outstanding shares. A small-cap company generally has a value of less than $500 million. Mid-cap companies are valued between $500 million and $5 billion and large cap's have values over $5 billion.

A financial term used to describe the value financial markets put on a company. Determined by multiplying the number of outstanding shares of a company by the current stock price.

Refers to the current value of a corporation's outstanding shares in dollars.

An approximation of a company's value, calculated by multiplying the price per share by the total number of company stock shares that are outstanding. Small-cap (Small capitalization) Mid-cap Large-cap Market capitalization below $1B Market capitalization between $1B and $5B Market capitalization over $5B

The attribution of a capital value to a stream of income; the amount of money that someone is prepared to pay now in order to receive a stream due in the future. A companyâ€™ market capitalisation is the value that is put on it by a stockmarket, that is the marketâ€™s value of one share multiplied by the number of shares that have been issued.

How much a company is worth.

The debt and/or equity mix funding firm's assets.

The market value of a company's securities, excluding its current liabilities. Typically, companies with a capitalization under $250 million are called small-cap, companies between $250 million and $1 billion are mid-cap and companies over $1 billion are large-cap.

The sum of a corporation's long-term debt, stock and surpluses. Syn. invested capital.

The total amount of securities issued by a corporation. This may include: bonds, debentures, preferred stock, common stock and surplus.

The total value of all stocks in a company. The stock price times the total number of stocks held.

Total amount of the various securities issued by a corporation. Capitalization includes bonds, debentures, preferred stock, common stock, and surplus, which represent the sources of long-term financing of the company. Bonds and debentures are usually carried on the books of the issuing company in terms of their par or face value. Preferred and common shares may be carried in terms of par or stated value.

The debt and equity structure of a company.

The value of all the stock of a company outstanding multiplied by the share price, plus some other unimportant stuff. This is the single most important factor in determining the value of a stock. Much more important than those confusing calculations like earnings, revenues and debt.

Short hand term normally used to refer to the company's "paid in capital."

Total amount of the various securities issued by a corporation. Capitalization may include bonds, debentures, preferred and common stock and surplus. Bonds and debentures are usually carried on the books of the issuing company in terms of their par or face value. Preferred and common shares may be carried in terms of par or stated value. Stated value may be an arbitrary figure decided upon by the director or may represent the amount received by the company from the sale of the securities at the time of issuance. (See: Par)

equal to a company's stock price multiplied by the number of shares owned by the public (that is, outstanding shares). For example, if a company is selling for $50 per share and has 1,000,000 shares outstanding, then the capitalization is $50,000,000 ($50 multiplied by 1,000,000).

the overall funding of a project; capitalization may consist of debt (financing provided by lenders) or equity Capitalization (through capital formation provided by investors). Capitalization may be raised directly between developer and lenders or investors, or indirectly through conduit investment programs, such as real estate investment trusts (REITs).

The total dollar value of all common stock, preferred stock, and bonds issued by a corporation.

The average market value of the securities held in a portfolio- defined as either Small (under $250 million), Core or Large (in excess of $1 billion)

The market price of an entire company, calculated by multiplying the number of shares outstanding by the price per share

the price of a company's stock multiplied by the number of outstanding shares; if a company's shares are selling for $25 per share and the company has 1,000,000 shares outstanding, the capitalization is $25,000,000

Long-term debt, preferred stock and net worth. The loan capital of a community development loan fund; includes that which has been borrowed from and is repayable to third parties as well as that which is earned or owned by the loan fund (i.e. "permanent capital").

See Total Capitalization.

The total amount of all securities, including long-term debt, common and preferred stock, issued by a company.

The total dollar value of various securities issued by a company

The debt and/or equity mix that funds a firm's assets.

Summation of long-term debt, surplus and capital stock

The sum of a corporation's long-term debt, stock, surpluses and retained earnings. Also called invested capital.

The value of a corporation, which is determined by multiplying the market price per share by the number of outstanding shares.

**Related Terms:**Income approach, Capitalization rate, Income capitalization approach, Direct capitalization, Income approach to value, Overall capitalization rate, Net income multiplier, Cap rate, Npv, Eva, Total rate of return, Net present value, Economic value added, Internal rate of return, Land residual technique, Gross income multiplier, Rate base, Rate of return, Gross rent multiplier, Gross investment, Return on capital, Adjusted present value, Accrued depreciation, Depreciation, Valuation reserve, Discounted cash flow analysis, Grm, Building residual technique, Salvage value, Accounting rate of return, Return, Amount realized, Acv, Ffo, Valuation, Embedded value, Irr, Profitability index, Taxable value, Adjusted basis, Cost approach, Worth, Net investment, Discounted cash flow, Net book value, Return on invested capital, Investment, Gross yield, Net cash flow

A process of determining property value.Capitalization is often used in appraisals, when percentage of probable returns on a property is compared to the net income and price of a property.This is a type of math you will want to do if you are interested in foreclosed homes.

1 ) In the appraisal process the conversion of earnings anticipated from the typical operation of a property into a sum of present worth (capital value). 2) In mortgaging, the conversion of interest into a principal sum and the subsequent amortization of that sum with interest.

The act or process of converting (obtaining the present worth of) future incomes into current equivalent capital value.

The process of ascertaining the value of a property by dividing Net Operating Income by Sale Price. (NOI/SALE PRICE.) Also know as Cap Rate.

A mathematical formula investors use to calculate property value based on net income.

an estimation of the value of a business

A method of appraising real property by converting the anticipated net income from the property into the present value. Also called the income approach to value.

The process by which anticipated future income and benefits are converted to a present value.

A process of value estimation which uses the desired rate of return on an investment, and the net operating income expected to be produced by the property.

A mathematical process using Net Income to determine value.

A method for establishing the "present value" of income property.

The value of all securities issued by a corporation, together with its retained earnings.

To invest funds in starting an earned-income venture. For the nonprofit this may include its own financial resources which could encourage other donors/investors to get involved.

1. in finance, a process whereby anticipated future income is converted to one lump sum capital value. A capitalization rate is divided into the expected periodic income to derive a capital value for the expected income. Sum of interest rate and recapture rate.

The process of ascertaining the value of a property by the use of a proper investment rate of return and the net income expected to be produced by the property. The formula of net annual income divided by proper capitalization rate is express: Income/Rate=Value.

In appraising, determining value of property by considering net income and a percentage of reasonable return on the investment. The conversion of income into value.

a mathematical method of converting income into value.

Method of earning income on the previous portion of investment income through reinvestment. The final value of the investment is made up of the initial investment amount plus the reinvested income.

An appraising term used in determining value by considering net operating income and a percentage of reasonable return on investment.

A method used to estimate value of a property based on the rate of return on investment.

A method of determining value of real property by considering net operating income divided by a predetermined annual rate of return. See " Capitalization Rate".

A mathematical process for converting net income into an indication of value, commonly used in the income approach to appraisal.

In appraising, a method used to determine value of a property by dividing annual net operating income by the capitalization rate.

The conversion of a future net income into a present value by using a specified desired rate of earnings as a desired discount rate. This capitalization rate is divided into the expended periodic income to derive a capital value for the expected income.

In appraising, An act or process of determining the value of property by dividing net income by a capitalization rate to come to an estimate of the present worth of expected future incomes, thereby converting them into current capital value.

A useful technique by which one reviews the rate of return and the property's annual income(net as opposed to gross) in an effort to approximate the perceived market value of a particular commercial or rental structure.

(Appraisal Usage) - The process of converting an income stream or anticipated future income into an indication of value. Capitalization is used in the Income Approach value.

Method of estimating a property's value by considering net annual income as a percentage of a reasonable rate of return on an investment. (Income - Rate = Value.).

A process of determining the value of real property in which project income is divided by a predetermined annual rate (capitalization rate). For example, a building with annual project income of $100,000 is worth $1,000,000 at a 10% capitalization rate ($100,000/10%= $1,000,000). See "Capitalization Rate Inside".

The process employed in estimating the value of a property by the use of an appropriate capitalization rate and the annual net operating income expected to be produced by the property. The formula is expressed as Income/Rate = Value

The process of determining the present value of income property by taking the annual net operating income (either known or estimated) and discounting by using a rate of return commonly acceptable to buyers of similar properties.

A mathematical formula that investors use to compute the value of a property based on net income.

A mathematical process for estimating the value of a property using a proper rate of return on the investment and the annual net income expected to be produced by the property. The formula is expressed: Income Rate — = Value. capitalization rate The rate of return a property will produce on the owner's investment.

The conversion of an income stream into a property valuation for purposes of appraisal. The process of converting income produced by an investment property into a meaningful value is called capitalization. The mathematical procedural is expressed as Net Annual Income/Capitalization Rate = Value.

a conversion of a single period stream of benefits into value.

The estimation of the value of income producing property by dividing the annual net income by the Capitalization Rate.

Mathematical formula used by investors to compute the value of a property based on net income.

In appraising it is a method of determining the value of property by interpreting the property's net income with a percentage which represents a reasonable return on invested capital.

The process of converting the income of a property into a capital value.

With regard to appraising; it is the determination of the value of property by considering net income and percentage of reasonable return on the investment. With regard to accounting practices; it is carrying an expenditure as an asset, rather than as an expense.

A way to estimate the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.

A method of determining the value of property during the appraisal by interpreting the property's net income with a percentage which represents a reasonable return on invested capital.

A means of estimating the value of real estate by applying a desired rate of return to the property's expected annual net operating income. The net income is divided by the capitalization rate.

To record and carry forward into one or more future periods any expenditure the benefits or process from which will then be realized.

The process of identifying major expenditure as Capital, whether there is a substantial asset or not, to reduce the impact on the current financial year of such expenditure. The most common item for this to be applied to is software, whether developed in-house or purchased.

the act of capitalizing on an opportunity

writing in capital letters

How you are going to raise money for your business.

Color key

Change fee

The act or process of capitalizing.

see Market Capitalization.