Verb
/ˌōvərˈkapitlˌīz/,
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overcapitalises, 3rd person singular present; overcapitalizes, 3rd person singular present; overcapitalizing, present participle; overcapitalized, past tense; overcapitalised, past tense; overcapitalising, present participle; overcapitalised, past participle; overcapitalized, past participle;
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Provide (a company) with more capital than is advisable or necessary
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a bleak time for the overcapitalized firm
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Estimate or set the capital value of (a company) at too high an amount
Web Definitions:
- estimate the capital value of (a company) at an unreasonably or unlawfully high level
- overestimate the market value of; "overcapitalize a property"
- capitalize beyond what the business or the profit-making prospects warrant
- (overcapitalization) (business) too much capitalization (the sale of more stock than the business warrants)
- (Overcapitalization) Overcapitalisation refers to an economic phenomenon whereby the valuation/ price of an asset is superior to its ‘real’ value – however difficult to define - therefore putting a strain on attempts to obtain a reasonable return on investment. ...
- (Overcapitalization) Said to occur when a firm cannot service its debt even though its debt/equity ratio is not excessive.
- Overcapitalization refers to an actual capital stock that is in excess of that optimum capital stock required to produce some desired target output level. ...