Rules of Capitalization Capitalize the first word of every sentence. Capitalize the first word in direct quotations EX. Sariya exclaimed, “Only one more week until break!” Do not capitalize indirect quotations. EX. Harriet said that the chess club will be holding a fundraiser. If a continuous sentence in a direct quotation is split and the second half is not a new sentence, do not capitalize it. EX. “You’re going to need a root canal,” said Dr. Wan, “as well as a filling.” If a new sentence begins after the split, then capitalize it as you would any other sentence. In a letter, capitalize the name of the street, the city, the state, and the month in the heading. Capitalize the salutation, or greeting, as well as the name of the person who is receiving the letter. Capitalize the first word of the closing. Dear Mrs. Grobin To whom it may concern: Your friend