Is “Overcapitalizes” a Scrabble word?

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Yes
OVERCAPITALIZES
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Invalid

Meaning of Overcapitalizes

verb
  1. 1.To estimate the value of a company, stock etc too highly

  2. 2.To capitalize a business beyond a sustainable level