What is meant by capitalization?
Usually it refers to the amounts received by a corporation for the issuance of its shares. However, it may also be used to refer to the proceeds of loans to a corporation made by its shareholders (which may be in lieu of capital contributions) or even to capital raised by the issuance of long term bonds or debentures to third persons. Depending on the context, it may also refer to accumulated earnings not withdrawn from the corporation.
