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Related to overtrading: overcapitalisation


v. o·ver·trad·ed, o·ver·trad·ing, o·ver·trades
1. To buy and sell securities too frequently, resulting in excessive volatility or high transaction costs.
2. To exceed the ability of a business to finance its operations by increasing sales too rapidly.
To buy and sell securities in (a market) too frequently.
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References in periodicals archive ?
Continental meats are hugely popular amongst Waitrose customers - with the supermarket significantly overtrading in the area - and with consumers taking a more heightened interest than ever in where their food comes from, the award winning Italian charcuterie builds further upon Waitrose's leading provenance credentials.
We are in a position where many of our existing stores have found themselves overtrading.
Not doing this can leave companies at risk of overtrading, resulting in insufficient cash flow to meet day-to-day business costs.
The research uncovered costly inefficiencies in three other areas: cash drag, with 27% of portfolios laden with 10% or more of idle cash; inattention, with 25% of portfolios monitored not having been rebalanced within the past year; and overtrading, with 20% of investors achieving a high 100% portfolio turnover.
But the evidence is that they are overtrading substantially in those stores and that's why it would be very attractive to operators not currently in the area.
Macadam revealed that several malls such as The Dubai Mall and the Mall of the Emirates are known in the industry to be overtrading, and that on some days it is not as comfortable for visitors to shop there as they normally would.
However, it is important businesses keep in mind not to overstretch themselves on the run up to Christmas, as overtrading now can have a significant impact on a business' future cash flow.
But I talk with the CEO every clay about the cash flow risks we run by overtrading.
While larger corporates have taken full advantage of the market opportunities available to them, a growing number of SMEs are overtrading and risk falling at the last hurdle.
David Macadam, CEO of the Middle East Council of Shopping Centres, said: "Right now, Dubai Mall and Mall of the Emirates, as two examples, are the most successful malls in Dubai and they're both, we call them in the industry, overtrading for their size, which means they have more people than is probably comfortable to make the maximum sales potential inside each.
Companies seeing new opportunities as the economy picks up can find themselves unwittingly overtrading for lack of cash flow.