Capitalização

Capitalização refers to the process of accumulating capital, which is wealth in the form of money or other assets owned by an individual or business. This accumulation can occur through various means, including savings, investments, and profits generated from economic activities. In a broader sense, it also describes the economic system where private ownership of the means of production and their operation for profit are the dominant features.

The concept of capitalização is central to economics and finance. Individuals might capitalize by saving a portion of their income regularly, aiming to build a nest egg for future needs or retirement. Businesses capitalize by reinvesting profits back into the company, acquiring new assets like machinery or technology, or expanding their operations. This process fuels growth and competitiveness within an enterprise.

The term "capitalização" can also be used in specific financial contexts, such as capitalization in accounting, where it refers to the process of recording an asset or expense on a company's balance sheet rather than treating it as a period cost. This distinction is important for accurately reflecting a company's financial position and performance. Furthermore, in some jurisdictions, "capitalização" might refer to specific financial products or schemes designed for long-term savings and investment, often with a lottery component. The fundamental idea behind all these uses is the growth and management of wealth over time.