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undercapitalization

American  
[uhn-der-kap-i-tuhl-uh-zay-shuhn, -ahy-zay-shuhn] / ˌʌn dərˌkæp ɪ təl əˈzeɪ ʃən, -aɪˈzeɪ ʃən /

noun

  1. the act or result of undercapitalizing a business or other 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.

Where significant undercapitalization is present, specifically undercapitalization caused by fraud, the protections afforded by the veil are pierced exposing the shareholders to liability.

From Forbes • Apr. 23, 2015

The net effect is a boost for infant publishing industries in countries that are afflicted with "undercapitalization and unsophistication."

From Time Magazine Archive

Wall Street turned to Washington for salvation after the wholesale collapse of brokerage firms exposed the mismanagement and undercapitalization of much of the securities trading business.

From Time Magazine Archive

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