undercapitalization

English

Etymology

From under- +‎ capitalization.

Pronunciation

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Noun

undercapitalization (uncountable)

1. (finance) Insufficient capitalization
   • 1988 April 1, Michael Miner, “Publish and Perish/Quiet Diplomacy”, in Chicago Reader‎^[1]:

     Most businesses die from undercapitalization, and we had access to a lot of cash.

Related terms

• overcapitalization