Investopedia

Continue to Site »

Capitalization Change

Filed Under »
Dictionary Says

Definition of 'Capitalization Change'

A modification in the issued and outstanding securities of a company. Capitalization changes occur either through the issuance of additional shares or the repurchase or cancellation of existing shares. This can have a dilutive or accretive effect on a company's market capitalization, depending on the scenario.
Investopedia Says

Investopedia explains 'Capitalization Change'

A company will go through a number of capitalization changes as it progresses from a start-up to a successful business. The most dramatic capitalization change for an individual company may often occur at the initial public offering stage, when it makes the transition from a private entity to a public issuer. Moreover, changes in capitalization frequently arise as the result of certain corporate activities such as a stock buyback or an acquisition.

Articles Of Interest

  1.

    Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.

  2. Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.

  3. Evaluating A Company's Capital Structure

    Learn to use the composition of debt and equity to evaluate balance sheet strength.

  4. A Breakdown Of Stock Buybacks

    Find out what these company programs achieve and what it means for stockholders.

  5. The "True" Cost Of Stock Options

    Perhaps the real cost of employee stock options is already accounted for in the expense of buyback programs.

  6. The Dangers Of Share Dilution

    Investors need to be aware of the existence of dilutive securities and how they can affect existing shareholders.

  7. The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.

  8. Convertible Bonds: An Introduction

    Find out about the nuts and bolts, pros and cons of investing in bonds.

  9. How Corporate Events Affect Stock- And Bondholders

    Investors tend to buy either stocks or bonds, but rarely choose between the two. Find out when you'll benefit from one over the other.

  10. Understanding Stock Splits

    We explain what they are, the thinking behind them as well as their results.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center