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Overcapitalisation
OVERCAPITALISATION

Definitions:

i. An economic phenomenon whereby the valuation/price of an asset is superior to its "real" value, however difficult to define, therefore putting a strain on attempts to obtain a reasonable return on investment.

ii. A financial situation where a company has more than enough total capital as compared to the needs of it.

iii. Occurs when a company has issued more debt and equity than its assets are worth.

iv. Refers to a situation where the company has raised capital beyond the specific limit which is unhealthy in nature for the company.

v. Refers to an economic phenomenon whereby the valuation/price of an asset is superior to its 'real' value, however difficult to define, therefore putting a strain on attempts to obtain a reasonable return on investment.
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* All seven elements would be in.


1. Never deliberately decided to be.

2. Worth is specific and identifiable.

3. Price sure listed in financial books.

4. Being superior would be for short term.

5. Cause or effect measurable or assessable.

6. Lasts for as long as solutions not applied.

7. Waste or loss suffered believed considerable.
___

See perfect NOWNESS.

Much capital, less gain.

More debts than assets.

See perfect TOO MUCH.
___

See perfect economic freedom.

See perfect economies of scale.

See perfect economic growth (1).

See perfect return on investment.

See perfect comparative advantage.

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