capital concept

What Is Overcapitalization And Undercapitalization? Overcapitalization indicates a situation of over-funding i.e.: the company has raised excessive funds as compared to its current requirements. Undercapitalization indicates a situation of under-funding i.e.: the company does not have enough funds/cash flow to meet the current needs of its business operations. What is Overcapitalization and its causes? Over-capitalisation