overcapitalise Synonyms
No Synonyms and anytonyms found
overcapitalise Meaning
overcapitalise (v)
estimate the capital value of (a company) at an unreasonably or unlawfully high level
overestimate the market value of
capitalize beyond what the business or the profit-making prospects warrant
overcapitalise Sentence Examples
- The company overcapitalised on their initial investment, resulting in financial strain.
- To avoid overcapitalisation, businesses should plan their investments carefully and anticipate potential risks.
- Overcapitalisation can lead to excessive debt and reduced returns for shareholders.
- Investors should be wary of companies that are overcapitalised, as it may indicate financial instability.
- Banks are often reluctant to lend to overcapitalised companies due to the increased risk of default.
- Overcapitalisation can hinder a company's ability to innovate and adapt to changing market conditions.
- Businesses should balance their investment decisions to avoid both overcapitalisation and undercapitalisation.
- Regulations may limit the amount of debt a company can take on, preventing overcapitalisation.
- Financial analysts use various ratios and metrics to assess a company's level of capitalisation and identify potential overcapitalisation.
- Companies may resort to overcapitalisation to gain a competitive advantage by investing heavily in assets or infrastructure.
FAQs About the word overcapitalise
estimate the capital value of (a company) at an unreasonably or unlawfully high level, overestimate the market value of, capitalize beyond what the business or
No synonyms found.
No antonyms found.
The company overcapitalised on their initial investment, resulting in financial strain.
To avoid overcapitalisation, businesses should plan their investments carefully and anticipate potential risks.
Overcapitalisation can lead to excessive debt and reduced returns for shareholders.
Investors should be wary of companies that are overcapitalised, as it may indicate financial instability.
