undercapitalization love

undercapitalization

Definitions

from The American Heritage® Dictionary of the English Language, 5th Edition.

  • noun The condition of lacking sufficient capital to perform normal business operations.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

  • noun finance Insufficient capitalization

Etymologies

from Wiktionary, Creative Commons Attribution/Share-Alike License

under- +‎ capitalization

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Examples

  • Most startups fail because of undercapitalization, which is even more of a problem in an economic downturn, especially at a time when even large, established companies are worried about insurance of all kinds.

    Bakersfield.com Latest news 2010

  • So long as investors worry about euro zone sovereign exposure, there will be fear of undercapitalization amongst banks and risk will likely trade on a heavy note and the euro will suffer accordingly, UBS said in a note to clients.

    Bank Stocks Lead Rally in Asia John Phillips 2011

  • Europe's banks are starting from such an extreme level of undercapitalization relative to the risks they face that the commission will have felt constrained in what it could ask for.

    EU's Proposal to Implement Basel III Undermines Spirit Geoffrey T. Smith 2011

  • Position in the initial Quarter of Production assures undercapitalization of Resource Recovery, due to the fact the Price values generated are inconsistent with provision of advanced Equipment and Labor because of lack of Profitability.

    Jobs and Tax Cuts, Arnold Kling | EconLog | Library of Economics and Liberty 2009

  • February 16th, 2010 at 5: 12 pm belaccifer lacca says: it would have dealt with undercapitalization, risk, bonuses, golden parachutes, and increased reporting as well as oversight. hmmmm, all the things this administration is talking about now.

    Think Progress » ‘Impeach Obama’ billboard ‘not meant to allege any impeachable offense.’ 2010

  • The extent of the undercapitalization of our banks was £50 billion, and was exactly the sum put up by the taxpayers for the emergency stabilization of our banking system.

    Beyond the Crash Gordon Brown 2010

  • While the manifestation of bank failure may have been undercapitalization, the true cause was much simpler: recklessness and irresponsibility all too often created by greed.

    Beyond the Crash Gordon Brown 2010

  • Contrary to our expectations, and long-held economic wisdom, the problem the world was to face was not, in the end, high inflation—the cause of every Western recession since the Second World War—but overleverage and undercapitalization, leading to huge financial instability.

    Beyond the Crash Gordon Brown 2010

  • Many holders fear that if they sell now, the value of the paper would still be so low that they would face undercapitalization coupled with an immediate requirement to obtain more funds from a still risk-averse system to avoid bankruptcy.

    Charles Kolb: The Value(s) of Wall Street 2010

  • Many holders fear that if they sell now, the value of the paper would still be so low that they would face undercapitalization coupled with an immediate requirement to obtain more funds from a still risk-averse system to avoid bankruptcy.

    Charles Kolb: The Value(s) of Wall Street 2010

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