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Definitions from WordNet

Definitions from the Web

Overcapitalisation

Definition

Overcapitalisation refers to the situation where a company has an excessively high amount of capital invested in its assets or operations, reducing its profitability and potential for growth.

Senses

• Noun: The act or instance of overcapitalising a company.
• Noun: The condition of having an excessive amount of capital invested in a business.
• Noun: The outcome of overcapitalising a company, resulting in reduced profitability and hindered growth.

Sample Sentences

1. The overcapitalisation of the company led to a decrease in its earnings and overall performance.
2. Investors were concerned about the potential overcapitalisation of the newly formed startup.
3. Overcapitalisation can occur when a company invests too much capital in non-profitable ventures.
4. Due to the overcapitalisation of the real estate market, property prices skyrocketed, making it unaffordable for many.

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