overcapitalization
- n (business) too much capitalization (the sale of more stock than the business warrants)
- The real trouble with the railroads is the aftermath of frenzied financing and excessive overcapitalization and not bus, truck, airplane, pipeline or waterway competition.
- The difficulty with Bethlehem Steel would therefore appear to be mainly overcapitalization.
- 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.