---
title: Capitalization
description: There are two meanings for capitalization as it relates to accounting and finance.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Capitalization](https://www.realized1031.com/glossary/capitalization)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 27, 2022 12:00:00 PM

There are two meanings for capitalization as it relates to accounting and finance. In accounting, capitalization refers to a method by which a firm expenses the costs associated with the acquisition of an asset over the useful life of the asset rather than at the time it is acquired. In finance, capitalization is a measure of a firm’s book value (the sum of its stock, long-term debt, and retained earnings) or its market value (the product of the number of outstanding shares and the stock price).

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