overcapitalize

/'ouvə'kæpitəlaiz/

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Certainly! Let’s break down the word "overcapitalize" in a way that's easy to understand.

Definition:

Overcapitalize (verb) means to estimate or assign a value to something, especially a business or property, that is too high compared to what it is actually worth. It often refers to a situation where a company has more capital (money and resources) than it needs or deserves based on its real market value or profit-making ability.

Usage Instructions:

• When to use: You can use "overcapitalize" when discussing finances, businesses, or properties, especially when talking about investments or valuations.
• Form: The word is a verb, so it can be used in different tenses. For example:
  • Present: "They often overcapitalize on their property."
  • Past: "They overcapitalized their business last year."
  • Future: "If they keep spending like this, they will overcapitalize their investments."

Example:

• "The company was forced to sell its assets after it overcapitalized and couldn't meet its financial obligations."

Advanced Usage:

In more technical discussions, "overcapitalize" can also relate to financial practices where a company might misjudge its potential for profit, leading to inflated stock prices or unrealistic business plans.

Word Variants:

• Overcapitalization (noun): The act of overcapitalizing or the state of being overcapitalized.
  • Example: "The overcapitalization of the firm led to severe financial issues."

Different Meanings:

While "overcapitalize" primarily refers to financial contexts, it can also be used in a broader sense to mean exaggerating or inflating the value or importance of something.

Synonyms:

• Inflate
• Overestimate
• Exaggerate
• Overvalue

Idioms and Phrasal Verbs:

There aren't specific idioms or phrasal verbs that directly relate to "overcapitalize," but you might encounter phrases like: - "Throw good money after bad" – This means continuing to invest in something that is already failing, which can relate to overcapitalization.

Summary:

So, when you hear or use the word "overcapitalize," think about the idea of assigning too much value to something, especially in a business context.

Academic

Verb

1. capitalize beyond what the business or the profit-making prospects warrant
2. overestimate the market value of
   • overcapitalize a property
3. estimate the capital value of (a company) at an unreasonably or unlawfully high level

Synonyms

• overcapitalise