Capitalisation of a firm refers to the composition of its long-term funds and its capital structure.
“Capitalisation of a corporation comprises the ownership capital and the borrowed capital as represented by long-term, indebtness. It may also mean the total accounting value of capital stock, surplus in whatever form it may appear and funded long-term debt” Lillin Doris. “Capitalisation comprises (i) ownership capital which includes capital stock and surplus in whatever form it may appear ; and (ii) borrowed capital which consists of bonds or similar evidences of long term debt”.
