Definition

To assign a value to something that is too high, especially in terms of money or capital for a business.

Example

The company overcapitalized its assets, leading to financial difficulties.

Tense Forms

Conversation

Have you ever thought about how some businesses overcapitalize their assets?

Yeah, it's interesting how that can affect their growth.

Right? I wonder if it's a common mistake among new startups.

Definitely, it can lead to serious financial issues if they're not careful.

Synonyms & Antonyms

Root Explanation

Overcapitalize → It is formed from "over-" (meaning excessively) and "capitalize" (from Latin "capitalis", meaning of the head or chief). The word means to excessively capitalize or overemphasize something, particularly in financial contexts.

Memory Tip

Think of 'over-' meaning excessively and 'capitalize' relating to the chief or main point — this helps you remember that 'overcapitalize' means to emphasize something too much.

Visually Confused Words