What is it called when reserves are incorporated into the share capital?

Question

Quizplus · Accepted Answer

When reserves are incorporated into the share capital, it is referred to as capitalization. This means that the reserves are used to increase the company's share capital, thereby increasing the overall value of the company. This can be done through the issuance of new shares to existing shareholders in proportion to their existing holdings, or through the conversion of reserves into equity.

What Is It Called When Reserves Are Incorporated into the Share