I was applying for a front-end position so I told him that I not know exactly what this is, but I explained it how I understood it (when you don't have enough memory in a function call) and it was ok
Sigiloso
26 de mai. de 2012
Slight more detail is:
Every program is allocated a stack segment which grows with each function call because it pushes every function's activation record (which means parameters, return value, local variables) on to the stack. If you have many recursive calls when every function pushes infinite records on stack, your program memory would run out i.e. at some point there is no more memory in program stack to push another record.