Definition

Having more capital than is necessary or reasonable for a business or investment.

Example

The company was overcapitalized, leading to inefficiencies in its operations.

Conversation

Have you heard about that new startup in town?

Yeah, I read they might be overcapitalized already!

It’s crazy how some companies just get so much funding at once.

For sure! Sometimes it just leads to problems down the line.

Synonyms & Antonyms

Definition

To invest too much capital in a business or project, often leading to financial difficulties.

Example

The company was overcapitalized, which made it hard to manage its finances effectively.

Tense Forms

Conversation

Did you hear about that company that overcapitalized on their latest project?

Yeah, it seems like they spent way too much money.

I can't believe they thought it would pay off like that.

Root Explanation

Overcapitalized → It is formed from "over-" (meaning excessively) and "capital" (from Latin "capitale", meaning principal or head). The suffix "-ized" (meaning to make or become) indicates the process of making something excessive. Thus, "overcapitalized" refers to the state of having too much capital invested in a business or project.

Memory Tip

Think of 'over-' meaning excessively and 'capital' referring to principal funds — this helps you remember that 'overcapitalized' means having too much capital.

Visually Confused Words