Business Dictionary
Capitalization
A-B C-D E-G H-K L-N O-P R-S T-W
Capitalization is the injection of capital into the company.
The process by which a company converts its cash reserves into new shares and issues them to existing shareholders on a pro rata basis. Also known as a Scrip Issue, or Bonus Issue. Note that since the effect of a capitalization issue is to increase the number of shares in the company, the market price of the shares will typically fall to reflect the dilution.
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