overcapitalization
- noun
- /ˌoʊvərˌkæpɪtəlɪˈzeɪʃən/
- Specialized
:
sobrecapitalización
- The company's overcapitalization made it difficult to sustain profits in a competitive market.
Examples
-
Finally, fishers did not see "overcapitalization"—as defined by too many boats or too much equipment on each boat to keep costs down and profits up—as a significant problem, even in Bristol Bay where such conditions are notorious.
Academic text (2003) -
As land prices rose, typical problems ensued: danger of overcapitalization, difficulties for beginning farmers, land prices exceeding long-term earning power, and fears that farmers would not be able to service debt and taxes if commodity prices dropped.
Academic text (1991) -
Limited retry into the hagfish fishery might help prevent overfishing while also ensuring that an adequate share of the resource is available for participants and helping to reduce the possibility of overcapitalization in the fishery.
Academic text (1993) -
Investors became concerned that the overcapitalization of the firm did not match its earning potential.
-
Due to excessive overcapitalization, the startup struggled to justify its inflated stock price.
Antonyms
How Capitalized
- Specialized
- Specialized
8
6.1
- Specialized
1
8.2
Surface Forms
Morphology
overcapitalization = overcapitalize (transparent) = over + capital + ize + ation
Formed by adding a standard noun-forming suffix to the verb 'overcapitalize', a predictable derivation for learners.
Etymology
Overcapitalization starts with over- ('too much') and capital ('money' or 'assets'), while -ization makes it a word for a 'state' or situation. So, overcapitalization means a company has 'too much' capital or too many shares for what it can earn, which can lead to financial problems.