English, asked by kishorupendra07, 11 months ago

4. What do you mean by Capitalisation? State the effects of over and
under Capitalization.

Answers

Answered by malik3650

Explanation:

Over-capitalisation affects the company, the shareholders and the society as a whole. The confidence of Investors in anover-capitalised company is injured on account of its reduced earning capacity and the market price of the shares which falls consequently.

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