1. to provide (a company or business) with more capital than is necessary or prudent for its operations
Usage: British spelling; American spelling is 'overcapitalizes'; finance/business term
2. to assign an excessively high capital value to (an asset or company)
Usage: finance/business term

Examples

• The startup overcapitalises its operations, holding far more cash than needed for growth.
• Investors worry that the company overcapitalises its real estate holdings on the balance sheet.
• The firm overcapitalises its equipment purchases, leading to inefficient capital allocation.
• When a business overcapitalises, it ties up money that could be returned to shareholders.
• The analyst noted that the corporation overcapitalises its subsidiary, inflating reported assets.