The United States Industrial Commission found that as regards railroads: "In the long run excessive capitalisation tends to keep rates high; conservative capitalisation tends to make rates low.
The general definition of overcapitalisation is capitalisation in excess of the proper valuation of a business.
Where abnormal returns on the original investment have been made, concessions to public opinion in the way of low rates and better facilities are more likely to come when capitalisation has not been inflated.
Had the capitalisation of the roads been kept down to the actual investment, most of them would have been able to pay the competitive rate of interest on all their stock, and still have a sufficient surplus to command excellent credit.
Chairman Knapp of the Interstate Commerce Commission admitted a few years ago that, in considering the reasonableness of a given rate, this body took into account the financial condition, and therefore the capitalisation of the railroad.
In brief, the proper measure of capitalisation is cost: either the original cost, as just explained and supplemented; or the present cost of reproducing the business.
Neither from the civil law nor from public sentiment have the devices of inflating capitalisation received that measure of approval which would confer upon investments therein the legal or the moral status of vested rights.
If a trust or a railroad has issued stock having a par value of twice the capital invested, its rate of dividend on the entire capitalisation will be only one-half the rate of interest that it is receiving on the investment.
Transcriber’s note: Excepting clear outliers, variations in capitalisation and hyphenation have been retained.
In this case the capitalisation of the reserve fund puts this temptation out of their reach since, when once the reserve fund has been capitalised, it can only be got at by greedy shareholders through the process of liquidation.
Oil shares, Mexican securities, industrial shares, insurance shares, and others in which capitalisation of reserves and bonus issues have been used as an effective lever for speculation, have enjoyed spells of considerable activity.
In fact, the capitalisation of reserves is sometimes criticised by economic purists as a retrograde step because it seems likely to encourage the directors to be extravagant in the matter of dividends.
Of the many kinds of Bonus shares, the one which has lately been most prominent in the public eye is that which is produced by the capitalisation of a reserve fund.
These are all (or virtually all) of one kind, in that their common aim and common basis of value and capitalisation is a preferentially advantageous sale.
This transfer or abstraction of capitalised wealth from the former owners is commonly effected by an augmentation of the nominal capital, based on a (transient) advantage inuring to the particular concerns whose capitalisation is so augmented.
Under the new dispensation of peace and security at large this manner of capitalisation and business enterprise might reasonably be expected to gain something in scope and security of operation.
At the time of the formation of this enormous organisation the capitalisation of each of the principal component companies was largely increased.
The real capitalisation is thus much greater than this nominal figure.
Part of this new surplus value is capitalised again, and expanding reproduction is thus, from the capitalist point of view, a constantly flowing process of alternate appropriation and capitalisation of surplus value.
Capitalist expanding reproduction thus acquires the specific characteristics of an increase in capital by means of a progressive capitalisation of surplus value, or, as Marx has put it, by the accumulation of capital.
It only allows of a gradual expansion which keeps strictly in step with the formation of the surplus value and is based upon the identity between realisation and capitalisation of the surplus value.
These inherent conflicts of the international loan system are a classic example of spatio-temporal divergencies between the conditions for the realisation of surplus value and the capitalisation thereof.
Yet this assumption is possible only so long as we envisage the surplus value earmarked for capitalisation purely in terms of value.
Advances in labour productivity may well lead to progressively increasing capitalisation of surplus value.
One of the best-informed experts on Russian economic relations, he had already in 1880 attracted attention by his treatise on the capitalisation of agricultural incomes, which was published in the review Slovo.
Unless this process is successfully concluded, the new capital and surplus value will be wholly or partly lost, the capitalisation of surplus value will have miscarried, and there will have been no accumulation.
Here again Marx takes for a starting point the capitalisation of half the surplus value in Department I.
But that this kind of capitalisation is impracticable in an exploiting society needs no proof.
What if the employers of labour were to perceive the true relation of things, and to find a way of creating an equilibrium by proportionally reducing their capitalisation and increasing their consumption?
The tax out of which the capitalisation is effected is paid by everyone only in proportion to the work he does.
The above list will hopefully give you a few useful examples demonstrating the appropriate usage of "capitalisation" in a variety of sentences. We hope that you will now be able to make sentences using this word.
