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Noun1.overcapitalisation - (business) too much capitalization (the sale of more stock than the business warrants)
capitalisation, capitalization - the sale of capital stock
business enterprise, commercial enterprise, business - the activity of providing goods and services involving financial and commercial and industrial aspects; "computers are now widely used in business"
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
This is called "overcapitalisation" which is, in effect, an economic phenomenon whereby the valuation/price of an asset is superior to its 'real' value, usually defined by the market.
Thus, the main challenge of the regulator is to design the right incentives in order to prevent any systematic overcapitalisation or underinvestment.
In his opinion, the problem of overcapitalisation on small farms loomed needlessly large in some people's minds, prompting a tart riposte from Lambert: 'It looks to me therefore that mechanisation in farming is going to force you into larger holdings unless you can find a way to overcome it yourself.' (94) With evident reluctance, the sixth report accepted that cooperative use of machinery did not offer a realistic solution to the problem of farm efficiency.