capitalization of reserves - the conversion of retained profits or other reserves into share capital by means of a bonus issue in connection with an increase of the share capital in the company. The c, capitalization of reserves - an issue of bonus shares, free of cost and only to existing shareholders, using part of the company's reserves; syn. bonus issue, bonus issue - an issue of shares to existing shareholders from the authorised capital, made possible by the capitalisation of reserves thus increasing the issued capital, aktsiaettevõtte vaba omakapitali suunamine aktsiakapitali täiendamiseks