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Capitalization is a term which has different meanings in both financial and accounting context….
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The two main theories which are involved with the amount of capitalization are as follows:-…
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Capitalization of a company neither should be low or high. It should be suitably available at the time of need…
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Under capitalization is any situation which restricts the business companies to acquire the funds which they need. …
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Company - It has a big impact on the company because of low profits the companies reputation is harmed….
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There are different sorts of remedies available for over capitalization which are as follows:-…
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The under capitalization in this one effect the company to bring the greater reputation for them and with greater earning their market shares also increases….
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Undercapitalization is when the actual capitalization is lower than its proper capitalization as it is given by its earning capacity….
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Remedies are the solutions which are available for the companies to overcome the problem of undercapitalization this can be done by using two factors. These factors are as follows…
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Watered stock/capital is that stock which is issued with a value much higher than the value of assets which a company ow…
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Overcapitalization is a state where earnings are not sufficient to justify the fair return on the amount of share capital which …
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Watered capital is called so because the flow of money can be seen at the time of promotional events only…
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Capitalization is a collection of share capital, loans, reserves and debentures…
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