overcapitalization overcapitalization

Definition(s):

  • (n) (business) too much capitalization (the sale of more stock than the business warrants)

Usage(s):

  1. They still suffer from the bad name many funds got in the 1929 crash, when their assets went down the drain through overcapitalization or skulduggery.
  2. The real trouble with the railroads is the aftermath of frenzied financing and excessive overcapitalization and not bus, truck, airplane, pipeline or waterway competition.
  3. The difficulty with Bethlehem Steel would therefore appear to be mainly overcapitalization.
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