Capitalization

Capitalization* is the total amount of all capitalized securities issued by a joint stock company. Capitalization includes bonds, other debt obligations, preferred and ordinary shares, reserve capital. Bonds and debt obligations ate usually recorded in the books of the issuing company at their par value. Preferred or ordinary shares may be recorded at the par value or stated value. The stated value may be any number agreed by the company’s directors or may be the amount received by the company from sale of the securities at the time of issue.