Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Capitalization
n. 1. The act or process of capitalizing or converting something into capital. 2. The amount or sum resulting from this act or process. 3. The total amount of long-term financing used by a business, including stocks, bonds, retained earnings, and other funds. 4. The total par value or stated value of the authorized or outstanding stock of a corporation.
Undercapitalization
The financial condition of a firm that does not have enough capital to carry on its business.
capitalization accounting method
See ACCOUNTING METHOD.
capitalization accounting method.
A method of determining an asset's present value by discounting its stream of expected future benefits at an appropriate rate.
capitalization rate
The interest rate used in calculating the present value of future periodic payments. - Also termed cap rate; income yield.
capitalization ratio
The ratio between the amount of capital raised and the total capitalization of the firm. - Also termed capital ratio.
leveraged recapitalization
See RECAPITALIzA. TION.
recapitalization
n. An adjustment or recasting of a corporation's capital structure - that is, its stocks, bonds, or other securities - through amendment of the articles of incorporation or merger with a parent or subsidiary. ( An example of recapitalization is the elimination of unpaid preferred dividends and the creation of a new class of senior securities. - recapitalize, vb. Cf. REORGANIZATION (2).
thin capitalization
The financial condition of a firm that has a high ratio of liabilities to capital.