overcapitalize

verb over·cap·i·tal·ize \ ˌō-vər-ˈka-pə-tə-ˌlīz , -ˈkap-tə- \

Definition of overcapitalize

transitive verb

1 : to put a nominal value on the capital of (a corporation) higher than actual cost or fair market value

2 : to capitalize beyond what the business or the profit-making prospects warrant

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overcapitalization

play \ˌō-vər-ˌka-pə-tə-lə-ˈzā-shən, -ˌkap-tə-\ noun

Recent Examples of overcapitalize from the Web

Yet now banks gripe that the Fed’s leverage limit is too stringent, and Goldman Sachs CEO Lloyd Blankfein last year complained that banks are overcapitalized.

— the editorial board, WSJ, "The Fed’s Capital Mistake," 19 Apr. 2018
SoftBank CEO Aims to Be Biggest Tech Investor Son’s mega-fund will unleash an unprecedented amount of money into sectors already seen as overcapitalized.

— peter elstrom, Bloomberg.com, "SoftBank's Son Chases Boyhood Dreams With $100 Billion Fund," 21 May 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overcapitalize.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.