Capitalization method

Capitalization method
A method of constructing a replicating portfolio in which the manager purchases a number of the largest-capitalized names in the index stock in proportion to their capitalization. The New York Times Financial Glossary

Financial and business terms. 2012.

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  • capitalization method — A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization. Bloomberg Financial Dictionary …   Financial and business terms

  • capitalization — /kaepatabzeyshan/ Capitalization represents the total amount of the various securities issued by a corporation. Capitalization may include bonds, debentures, preferred and common stock and surplus. Bonds and debentures are usually carried on the… …   Black's law dictionary

  • capitalization — /kaepatabzeyshan/ Capitalization represents the total amount of the various securities issued by a corporation. Capitalization may include bonds, debentures, preferred and common stock and surplus. Bonds and debentures are usually carried on the… …   Black's law dictionary

  • Capitalization-weighted index — A capitalization weighted index is an index whose components are weighted according to the total market value of their outstanding shares. Also called a market value weighted index. The impact of a component s price change is proportional to the… …   Wikipedia

  • Capitalization Of Earnings — A method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. The capitalization of earnings estimate is done by taking the entity s future earnings and… …   Investment dictionary

  • capitalization rate — n. Cap Rate, interest rate for calculating the present value; method for converting an estimate of income expectancy of one a single year into an indication of value in one direct step by dividing the income estimate by a proper rate …   English contemporary dictionary

  • Adjusted Net Asset Method — A business valuation procedure used in acquisition accounting that changes the stated values of a company s assets and liabilities to reflect its current fair market values. This accounting technique adjusts asset and liability values either up… …   Investment dictionary

  • Free-Float Methodology — A method by which the market capitalization of an index s underlying companies is calculated. Free float methodology market capitalization is calculated by taking the equity s price and multiplying it by the number of shares readily available in… …   Investment dictionary

  • social security — 1. (usually caps.) a program of old age, unemployment, health, disability, and survivors insurance maintained by the U.S. federal government through compulsory payments by specific employer and employee groups. 2. the theory or practice of… …   Universalium

  • Sensex — An abbreviation of the Bombay Exchange Sensitive Index (Sensex) the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively traded stocks on the BSE. Initially compiled in 1986, the Sensex is the… …   Investment dictionary

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