How Do You Spell CAPITALISATION?

1. Capitalisation is a financial term that refers to the process of converting a company's financial assets and liabilities into stock shares or equity. It involves determining the value of a company by dividing its earnings or net worth by a certain rate of return or capitalization rate. This process is commonly used in the valuation of businesses, particularly when determining the worth of publicly traded companies.

   In the stock market, capitalisation also refers to the total market value of a company's outstanding shares of stock. This value is calculated by multiplying the stock's current market price per share by the total number of shares outstanding. The resulting figure indicates the size and scale of a company, allowing investors to assess its financial strength, stability, and potential growth.

   Capitalisation can also be used to describe the practice of representing proper nouns or major words with initial capital letters. This grammatical aspect is commonly seen in writing style guides and principles, where certain words are capitalized for emphasis, formality, or to abide by grammatical rules. Examples include capitalizing the first word of a sentence, names of people and places, titles of books or movies, and the pronoun "I." The purpose of capitalisation in this context is to aid readability and comprehension, ensuring the clarity and proper structure of written work.

2. Act by which anything is converted into capital.

   Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.

Common Misspellings for CAPITALISATION

The word capitalisation originated from the Latin term caput, which means head. In medieval Latin, the term capitale referring to wealth or principal sum emerged from this root. During the 17th century, capital in English began to be used to denote wealth or financial assets. The word capitalisation is derived from capital and the suffix -tion, which indicates an action or process. Thus, capitalisation originally referred to the action or process of determining the total value or worth of a company based on its financial assets or capital. Over time, the term expanded to include other meanings, including the use of capital letters in writing, as in capitalising words.

Similar spelling words for CAPITALISATION

Plural form of CAPITALISATION is CAPITALISATIONS

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