A capitalization table summarizes a company’s ownership interests, securities, and ownership percentages.
It is commonly called a cap table.
Why a capitalization table matters
The cap table helps owners, investors, buyers, and lawyers understand who owns what and how ownership may change after financing, option grants, conversions, or transfers.
Errors can affect negotiations, voting, dilution, sale proceeds, and governance rights.
Where a capitalization table appears
Capitalization tables appear in startup financing, mergers and acquisitions, shareholder disputes, option plans, investor due diligence, and company recordkeeping.
They may include common stock, preferred stock, membership interests, options, warrants, convertible notes, and SAFEs.
How it differs from nearby terms
A capitalization table is an ownership summary. A shareholder agreement sets contractual rights among shareholders.
Voting rights describe decision power, while the cap table shows ownership structure and securities.
Practical example
Before raising money, a startup updates its cap table to show founder shares, employee options, and the ownership percentage an investor would receive after the financing.
Related Terms
Quick check
Question: Is a capitalization table mainly an ownership summary?
Answer: Yes. It summarizes ownership interests, securities, and ownership percentages.