How is 'capitalization' different from ' capital structure'?
Dear student,
Capitalisation in simple terms refers to the amount of funds that the firm keeps for meeting its long term needs. It comprises of the face value of the long-term securities as well as the value of reserves of the company.
On the other hand, capital structure refers to the combination of owner's funds and borrowed funds in the total funds of the company.
Capitalisation in simple terms refers to the amount of funds that the firm keeps for meeting its long term needs. It comprises of the face value of the long-term securities as well as the value of reserves of the company.
On the other hand, capital structure refers to the combination of owner's funds and borrowed funds in the total funds of the company.