undercapitalize

American  

[uhn-der-kap-i-tl-ahyz] / ˌʌn dərˈkæp ɪ tlˌaɪz /

especially British, undercapitalise

verb (used with object)

undercapitalized, undercapitalizing

1. to provide an insufficient amount of capital for (a business enterprise).

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undercapitalize British  

/ ˌʌndəˈkæpɪtəˌlaɪz /

verb

1. to provide or issue capital for (a commercial enterprise) in an amount insufficient for efficient operation

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Other Word Forms

• undercapitalization
  noun

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Etymology

Origin of undercapitalize

under- + capitalize

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Example Sentences

See Examples For:

undercapitalize undercapitalized

The combined capitalization of these companies is $957,843,750, but as it has until very recently been the policy of Standard Oil to undercapitalize, its actual resources are considerably in excess of this sum.

From Time Magazine Archive

The two mortgage giants are also undercapitalized, even as Messrs. Pulte and Trump talk about letting them break free of government conservatorship and float IPOs.

From The Wall Street Journal ● Oct. 8, 2025

Nicolas Veron, a banking expert at the Bruegel think tank in Brussels, said European banking supervision is much stronger than in 2007 when banks were “dramatically undercapitalized and poorly supervised.”

From Seattle Times ● Mar. 16, 2023

But at present, too much of this freedom is being used to reinvent financial architectures that were de-permissioned for good reason — including the self-dealing clearinghouse, the undercapitalized market-maker and the Ponzi scheme.

From Washington Post ● Nov. 14, 2022

“China is so undercapitalized right now, it’s ridiculous,” he said.

From Washington Times ● Dec. 20, 2021

And, of course, we saw at once that the thing was ridiculously undercapitalized.

From North of Fifty-Three by Anton Otto Fischer

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