Definition of: overcapitalize

(ō′vər·kap′i·təl·īz′) v.t. ·ized, ·iz·ing
1. To invest capital in to an extent not warranted by actual prospects.
2. To affix an unjustifiable or unlawful value to the nominal capital of (a corporation).
3. To estimate the value of (a property, company, etc.) too highly.
—o′ver·cap′i·tal·i·za′tion noun