overcapitalisation
/ˌoʊvərˌkæpɪtəlɪˈzeɪʃən/
noun
- The situation where a company has more money invested in it than it can profitably use.
- Overcapitalisation can lead to low returns for shareholders.
- The startup suffered from overcapitalisation after raising too much venture capital.
- The company's overcapitalisation was due to issuing too many shares.