overcapitalize

[ oh-ver-kap-i-tl-ahyz ]

verb (used with object)

, o·ver·cap·i·tal·ized, o·ver·cap·i·tal·iz·ing.

1. to fix the total amount of securities of a corporation in excess of the limits set by law or by sound financial policy.
2. to overestimate the capital value (of a business property or enterprise).
3. to provide an excessive amount of capital for (a business enterprise).

overcapitalize

/ ˌəʊvəˈkæpɪtəˌlaɪz /

verb

1. to provide or issue capital for (an enterprise) in excess of profitable investment opportunities
2. to estimate the capital value of (a company) at an unreasonably or unlawfully high level
3. to overestimate the market value of (property)

Derived Forms

• ˌoverˌcapitaliˈzation, noun

Other Words From

• over·capi·tal·i·zation noun

Word History and Origins

Origin of overcapitalize¹

First recorded in 1885–90; over- + capitalize

Example Sentences

The secretary offers two reasons: The Cares Act set a year-end sunset; and actual usage of the program has been minimal — only $25 billion in actual lending — so it is already overcapitalized.

From Washington Post

Jackpots have only become bigger as venture capital has grown overcapitalized; last year exit values, the proceeds from selling shares, topped two hundred billion dollars for the first time.

From The New Yorker

On Monday, he made his intentions clear in a couple of rambling, overcapitalized tweets: “Our real opponent is not the Democrats, or the dwindling number of Republicans that lost their way and got left behind.”

From Washington Post

“There’s definitely a little bit of this, ‘Let’s overcapitalize the company a little bit so we can move quicker and faster,’ ” he said.

From New York Times

The giants say they are overcapitalized, and it’s true that their balance sheets are far stronger than before the 2008 panic.

From Wall Street Journal