Capitalization - a term that has multiple meanings.But the process is a result of a common goal - increasing revenues.The concept of capitalization is applicable not only to a particular company, but also for the industry as a whole, or even for all enterprises separate state.Yet term is divided into four separate values.Firstly, the market capitalization - is the transformation of the whole or part of the profit into additional capital or additional reasons - means (items) labor, an increase in staff, and more.The result is an increase in weight of its own funds.In other words, it implies a market capitalization calculated and deliberate actions associated with the loss of the entire amount or a part thereof, that allow eventually acquire greater dividends than are available.Secondly, an assessment of the capitalization of individual companies.It is calculated on the basis of working capital and fixed assets.Third, is to calculate the value of the enterprise on the basis of profits that it receives each year.
Fourth capitalization - an assessment of the firm produced by the market value of its securities.This type involves the theory that the free market system is capable of operating in order to take into account all the circumstances affecting the price of the whole enterprise - jointly.That is only on the stock exchange and possibly find out the real face value of the company.The calculation is made quite simple: you have to stock-market value of the securities multiplied by their number.For example, the company issued 100 million shares, which at the time of trading on the stock exchange were the price of 100 rubles.By simple multiplication we get a figure of 10 million.That it is the market capitalization of the company.Among the leaders of the domestic enterprises in this parameter are "Rosneft", "Gazprom", "Lukoil", "Savings Bank" and "Norilsk Nickel".
in banking activity capitalization - is the addition to the capital gains from the current rate of interest, the issue of bonds, shares and other methods to increase the financial base.For example, capitalization of interest - a monthly or quarterly increase in the basic amount, which in the following period will be accrued dividends.Separately consider the capitalization of the stock market.Here - an index of the scale of operations, or otherwise - the total market value of securities in circulation.There is still such a differentiation of the concept, as a direct capitalization.It is a way of transformation of the annual income from the object directly to the cost.That is the price - not a simple face value and the sum of the actual and potential profits.The aim of this process is to obtain periodic income from investments in real estate funds.
Capitalization - is really an instrument that makes a profit.But it works effectively only when the data involved in the calculation thereof is correct.In order that the information was true, every company uses this tool in one form or another, there are structures that are engaged in this issue.
