overcapitalization

IPA: ˈoʊvɝkæpɪtʌɫɪzˈeɪʃʌn

Examples of "overcapitalization" in Sentences

The company's rapid growth led to overcapitalization, as they invested heavily in multiple projects simultaneously
Overcapitalization can happen when businesses take on too much debt without a clear plan for how to use the funds effectively
The overcapitalization of certain industries can lead to market volatility and instability
Investors should be wary of companies that show signs of overcapitalization, as it may indicate financial mismanagement
Overcapitalization can be a red flag for potential investors, signaling that a company may be overvalued and at risk for a downturn in profitability