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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



(1) The conversion of surplus value into capital, that is, the utilization of surplus value for the expansion of capitalist production. The capitalized surplus value forms a fund of capital accumulation that, like capital, is divided in two parts: the additional constant capital, used for the acquisition of additional means of production, and the additional variable capital, used for buying additional labor power.

(2) The process of the formation of fictitious capital. In bourgeois society, each regularly recurrent income (such as ground rent or dividends) is capitalized: it is calculated at the average loan interest rate as if it were income from capital in the form of a loan at this interest rate. Each unearned income received by virtue of the ownership of securities is considered as interest from a certain capital, which in reality does not exist (imaginary capital). The securities issued (shares, bonds of corporations or the state) become capital and bear interest. The increase in the rates of the shares (capitalized dividends), particularly in the period of cyclic upsurge, leads to the accumulation of fictitious capital, which qualitatively and quantitatively differs from the accumulation of real capital and which is determined by its own laws. At the same time, the excessive expansion of fictitious capital and the subsequent stock exchange collapse may seriously affect the process of capital accumulation. Since the whole mass of fictional capital represents a capitalized income, the change of its value does not depend on the value movement of the actual (real) capital that it represents. Capitalization means the further development of the fetishist character of capitalist relations of production, that is, a further development of the treatment of money and things as if they had a kind of magic power over men.


Marx, K. Kapital, vol. 3. K. Marx and F. Engels, Soch, 2nd ed., vol. 25, chs. 1–2, sees. 5–7.
Novye iavleniia v nakopenii kapitala v imperialisticheskikh stranakh. Moscow, 1967.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Under the agreement that has been entered into it has been agreed with the Company and Professor Conroy that the outstanding debt of EUR86,208 shall be capable of being capitalised into new ordinary shares in the Company with the price of any capitalisation to be the mid-market price on the date of capitalisation or the Company can decide to repay the outstanding debt should the Company have sufficient funds to do so.
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As part of Cyprus's bailout terms, Bank of Cyprus converted almost half of its uninsured customer deposits to equity before absorbing the operations of the defunct Cyprus Popular Bank, also known as Laiki, whose capitalisation at the end of 2012 was e1/4150.1m.
The Dubai Financial Market and Abu Dhabi Stock Exchange also lost $3.95 billion and $4.18 billion, respectively, in market capitalisation last year.
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"AUB is pleased to expand and diversify its banking partnership with IFC and the IFC Capitalisation Fund in a landmark capital raising transaction which will have a major impact on its regional growth and business development.
"AUB is very pleased to expand and diversify its banking partnership with IFC and the IFC Capitalisation Fund in a landmark capital raising transaction which will have a major impact on its regional growth and business development.
But council leader Warren Bradley insisted the government had "clearly stated" it would not allow capitalisation for Capital of Culture and said it had let Liverpool down.
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