overcapitalization

Excessive stock issuance

Overcapitalization occurs when a business has more capital invested than it can profitably employ, or when its stock is valued higher than its actual assets justify.

The term also applies to writing—using capital letters where lowercase would be standard: The Author Thanks their Editor shows overcapitalization.

In finance, an overcapitalized company may struggle to generate adequate returns for investors.

excess

glut

Excessive surplus

surplus · redundancy · overkill · overextension · bloat · overinvestment · overexpansion · overfunding · top-heavy · wasteful

finance

equity

Impartial treatment or ownership value

  • debtMoney owed another
  • leverageBorrowed capital for amplified returns
  • fundingSupplying monetary resources

dilution · shares · underwriting · overleveraged · shareholders · IPO · securities · overfinanced

bubble

speculation

Unproven theorizing or risky investment

  • dotcomInternet-based commercial enterprise
  • crashSudden violent impact
  • tulipmaniaHistoric floral speculation craze

burst · mania · panic · collapse · frenzy · unsustainable · overhyped · euphoria · boom · overvaluation

valuation

overvalued

Rated beyond actual worth

price · overpriced · mispriced · premium · markup · assessment · overstated · impairment · goodwill · revaluation

Opposites
capitalization level

overcapitalizationundercapitalization

Insufficient business funding level

underfunding · undervaluation · undervalued · underpricing

capital adequacy

overcapitalizationundercapitalization

Insufficient business funding level

underfunding · underinvestment · cash-strapped · illiquidity

Family

over, capital, capitalize, capitalization, capitalized, capitalizing, capitals, capitalism, capitalist

Familiarity
Top 1,000,000
Profile
Used worldwide · Timeless · Abstract · Rated G