over capitalization

  

Definition

Situation where a firm has more capital than it catered-for or needs. Thus, its assets are worth less than its issued share capital, and the earnings are insufficient to pay dividend and interest. This situation is remedied generally by buying back issued shares (stock) or by paying off debt.

Related Videos




http://www.businessdictionary.com/definition/over-capitalization.html

Have a question about over capitalization? Ask for help in the
Community
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z