Undercapitalized

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Undercapitalized

A business has insufficient capital to carry out its normal functions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Undercapitalized

Describing a company that has insufficient capital to maintain operations without outside assistance. Undercapitalized companies often rely on short-term loans for funding, though they may issue stock or bonds at some point to raise capital.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

undercapitalized

Of, relating to, or being a firm that has insufficient long-term equity to support its assets. A rapidly growing company that finds itself financing its operations primarily with short-term loans may be undercapitalized.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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References in periodicals archive ?
The Nigerian central bank has said that no bank in the nation is undercapitalised.
Rejecting some media reports that banks in the nation are in a perilous condition, director, Banking Supervision, Tokunbo Martins, denied that banks in the nation are undercapitalised.
Federal Deposit Insurance Corp vice chairman, Thomas Hoenig, said, 'It's horrible, I mean they're horribly undercapitalised. They have no margin of error.'
Deutsche Bank is 'horribly undercapitalised' said Federal Deposit Insurance Corp vice chairman, Thomas Hoenig, in an exclusive interview with Reuters.
Infoserve also reported however that it remains undercapitalised, leaving it able to operate at current trading levels but unlikely to be able to continue to grow at its present rate without additional funding.
The OFT set the deadline after it found that the bank was undercapitalised. The bank came into existence in 1920 to combat rampant discrimination in lending.
US Federal Reserve has determined Marco Community Bank of Marco Island, Florida as undercapitalised and has ordered the bank to take steps to remedy its position.
The Federal Deposit Insurance Corp (FDIC) has announced that Horizon Bank, a subsidiary of Horizon Financial Corp (NASDAQ: HRZB), is undercapitalised.
The Fed said that Michigan Heritage Bank (NASDAQ-OTCBB: MHBC) is 'critically undercapitalised.' The Fed has directed the lender to increase its equity, enter into a contract to merge or be acquired, or take other necessary measures to become adequately capitalised.