What is the meaning of over-capitalisation, Financial Management

What is the meaning of Over-capitalisation

It is the opposite of over trading. It means a company has a large volume of inventories, trade receivables and cash balances though very few trade payables. Funds tied up could be invested profitably.

 

Posted Date: 8/31/2013 6:08:45 AM | Location : United States







Related Discussions:- What is the meaning of over-capitalisation, Assignment Help, Ask Question on What is the meaning of over-capitalisation, Get Answer, Expert's Help, What is the meaning of over-capitalisation Discussions

Write discussion on What is the meaning of over-capitalisation
Your posts are moderated
Related Questions
Q. Short terms working capital? 1) Indigenous bankers: private money leased and other country banking used to be the only source of finance prior to the establishment of the

Explain the pricing-to-market phenomenon. Answer: The pricing-to-market abbreviated as PTM refers to the phenomenon that similar securities are priced in a different way for diff

Accounting and Financial Management 1. What is over capitalization? How do we know over capitalization has occurred? 2. Explain permanent and temporary working capital. 3

Q. Show Factors influencing participation? Factors influencing participation: several research studies have shown that the intensity of participation depends on four factors.

It is a feature that allows the issuer to redeem its bonds before maturity. Almost all convertible bonds come with this feature. Due to this feature, bonds carry

Introduction of Financial Management Accounting has evolved and emerged within response to the social and economic needs of the society. The procedure of book keeping (mainten

Illustration  An investor with a 1-year investment horizon purchases a 20-year 5% corporate bond. The prevailing price of the bond is Rs.82.3488 for a yield of 6.2%

Ledgers: Ledgers record all the entries into the Cash Books. They use the concept of 'double entry' bookkeeping where every ledger entry must be accompanied by another ledger e

Q. Discuss the techniques to manage risks? Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of the four major categories li

Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send? An enhance in cash dividends is often se