Capitalization
InvestingThe total market value of a company's outstanding shares, or the process of recording an expense as an asset.
Example
Example: Consider an investor building a $100,000 portfolio. Capitalization — the total market value of a company's outstanding shares, or the process of — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.