overcapitalization
/ˌoʊvərˌkæpɪtəlɪˈzeɪʃən/
noun
- The situation where a company has more money invested in it than it can profitably use.
- Overcapitalization often results from poor financial planning.
- The firm's overcapitalization made it difficult to pay dividends.
- Economists warned that overcapitalization could harm the economy.