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.
thin capitalization. The financial condition of a firm that has a high ratio of liabilities to capital.
undercapitalization. The financial condition of a firm that does not have enough capital to carry on its business. [Cases: Corporations 1.4(1). C.J.S. Corporations §§ 9, 13.]
