un·​der·​cap·​i·​tal·​ized | \ ˌən-dər-ˈka-pə-tə-ˌlīzd How to pronounce undercapitalized (audio) , -ˈkap-tə- \

Definition of undercapitalized

: having too little capital for efficient operation an undercapitalized business

Examples of undercapitalized in a Sentence

Recent Examples on the Web Hollywood’s technological shift from silent to sound coincided with the Great Depression and left most Black film companies undercapitalized and unable to bear the cost of expensive new sound equipment and camera gear. Artel Great, The New Republic, "Black Cinema Matters," 11 Sep. 2020 Our strategic aim in partnership with BCE has been to aggressively consolidate and maximize underdeveloped, undercapitalized or otherwise distressed areas in the Mid-Continent. Jordan Blum, Houston Chronicle, "Bankrupt Alta Mesa assets sold for $320M," 29 Jan. 2020 Its accounts would have fully consolidated the acquisition and made a deduction for the minorities, leaving the acquirer undercapitalized. Chris Hughes | Bloomberg, Washington Post, "Just When Neil Woodford Thought It Couldn’t Get Worse," 5 June 2019 In terms of poorly run, undercapitalized companies and divisions, most of the low-hanging fruit has already been picked. Steven Pearlstein, Washington Post, "Sen. Elizabeth Warren’s plan for private equity has good aims but misses the mark," 27 July 2019 The Trump administration contends that taxpayers will remain at risk as long as Fannie and Freddie are undercapitalized and in the government’s grip. Los Angeles Times, "Trump’s Fannie-Freddie plan would end a decade of U.S. control of housing finance," 5 Sep. 2019 The original drafts of JPMorgan and Capital One’s plans exposed them to being too undercapitalized in a worse-case scenario. Washington Post, "Banks announce billions in share buybacks after Fed approval," 27 June 2019 The central bank said stress tests showed the lender was undercapitalized. Max Colchester, WSJ, "The Battle for PrivatBank: Can Ukraine Bring Its Oligarchs to Heel?," 6 Apr. 2018 Big banks were undercapitalized prior to the panic and experienced losses on average equal to 6% of assets. The Editorial Board, WSJ, "Big Bank Custody Fight," 7 Mar. 2018

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

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First Known Use of undercapitalized

1962, in the meaning defined above

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The first known use of undercapitalized was in 1962

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Last Updated

21 Sep 2020

Cite this Entry

“Undercapitalized.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/undercapitalized. Accessed 22 Sep. 2020.

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More Definitions for undercapitalized


un·​der·​cap·​i·​tal·​ized | \ ˌən-dər-ˈka-pət-ᵊl-ˌīzd How to pronounce undercapitalized (audio) \

Legal Definition of undercapitalized

: having too little capital for efficient operation undercapitalized companies

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