Capitalisation

1. Financial accounting.

When a fixed asset is purchased the cost is not debited to the income statement (or profit and loss account).

Instead the debit is to the balance sheet, creating an asset.

2. Market value.

The total market value of a firm's capital.

3. Capital amount.

The adequacy of the amount and nature of an organisation's capital, particularly the capital of a bank.

4. Equity.

The total market value of a listed company's equity.

Sometimes known as the 'equity market capitalisation'.

See also

• Basel III
• Capital
• Capital adequacy
• Capital structure
• Capitalise
• Corporate finance
• Depreciation
• Equity
• Fixed assets
• FTSE
• Fundamental analysis
• IAS 16
• IAS 38
• Impairment
• Intrinsic value
• Large-cap
• Listed company
• Mid-cap
• NOSH
• Recognition
• Re-equitisation
• Revaluation
• Shareholder value
• Small-cap
• Technical analysis