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overinvestment

overinvestment

1 6.2
Putting too much money into a project or company that does not pay back
  • noun
  • /ˌoʊvərɪnˈvɛstmənt/
translation icon : sobrerinversión
  • The US military strategy is not overinvestment in a single technology, but overinvestment in a wide variety of technologies.
  • lead to overinvestment

Examples

  • Finally, the overinvestment in houses does not present the systemic risk of economic breakdown that the overextension of credit does.

    Blog text (32)
  • China's failure to pay corporate dividends has swollen corporate treasuries, leading to a cycle of overinvestment in capital equipment and to a form of corporate speculation on the stock market that is similar to the Japanese practice of using surplus capital for short-term, high-risk investing, known as zaitekku.

    Academic text (2008)
  • The US military strategy is not overinvestment in a single technology, but overinvestment in a wide variety of technologies.

    Blog text (20)
  • The result was massive overinvestment and excess capacity that was dumped into the U.S. market.

    Blog text (1)
  • It may lead to overinvestment in risky ventures.

    Academic text (2017)
  • Historical experience teaches that public enterprises around the world have been prone to repeated financial crises through overinvestment and overly generous compensation of employees.

    Academic text (1990)
  • Acceleration and foreclosure, triggered by an event of default, are intended to eliminate the junior option when the moral hazard of the junior interests becomes especially intense and the risk of overinvestment becomes particularly acute.

    Academic text (2017)
  • In Kuwait, effort levels in the trawl fishery were established by inappropriate management policies in the early 1960s when high catch rates attracted heavy overinvestment in the fishery (Mathews et al., 1986).

    Academic text (1994)
  • The company's overinvestment in unproven technologies ultimately harmed its financial stability.

  • Many industries face serious challenges due to overinvestment in outdated equipment and infrastructure.

Synonyms

malinvestment
vsoverinvestment
  • Specialized
2 9.9

Money put into projects that fail to make money because of bad choices or wrong signals

focuses on excess or unsustainable amounts rather than poor project choice
overcapitalization
vsoverinvestment
  • Specialized
9.3

Having more capital than a business earns or needs

covers putting too many resources into projects rather than only company funding

Antonyms

Not spending enough money to keep, improve, or grow something

How Invested

overinvestment
1 6.2
investment
3.2

Surface Forms

Morphology

overinvestment = investment (transparent) = over + invest + ment

This is a straightforward prefixation of 'over-' to 'investment', with the meaning of excessive investment being compositionally clear.

Etymology

Overinvestment comes from over- meaning 'too much' and invest meaning 'to put money or resources into something'. So overinvestment in finance is putting more money or resources than needed into a project, which is why it can lead to waste or losses.