Definition of "undercapitalization" [undercapitalization]

• Insufficient capitalization (noun)

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• "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."
• "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."
• "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."