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overcapitalization

American  
[oh-ver-kap-i-tuhl-uh-zay-shuhn, -ahy-zay-shuhn] / ˌoʊ vərˌkæp ɪ təl əˈzeɪ ʃən, -aɪˈzeɪ ʃən /

noun

  1. the act or result of providing an excess of capital for a business or industry.

  2. the overestimation of the value of a business or enterprise.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

As president, Roosevelt continued to attack overcapitalization, but Congress lacked the political will to act against it.

From The Wall Street Journal • Jun. 12, 2026

If you look at 1873 or 1929, you can say, “It’s clear, we’ve got an overcapitalization over here, an issue over there”—but the numbers in ’93 were not bad.

From Slate • Nov. 2, 2020

The real trouble with the railroads is the aftermath of frenzied financing and excessive overcapitalization and not bus, truck, airplane, pipeline or waterway competition.

From Time Magazine Archive

In a period of monopoly, combinations, overcapitalization, high rates, poor service and discrimination against the small shipper, you established a landmark in the regulation of public utilities for the good of their users.

From Time Magazine Archive

The drift of business enterprise in its newer form is thus toward a relative checking of the discrepancy between estimated and actual earnings, or, in other words, toward a retardation in the process of overcapitalization.

From Readings in Money and Banking Selected and Adapted by Phillips, Chester Arthur

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