watered stock

watered stock
watered stock see stock

Merriam-Webster’s Dictionary of Law. . 1996.

watered stock
n.
Stock issued by a corporation whose total worth is less than its capital investment; stock issued for less than adequate consideration, as a bonus or as part of compensation, which means that its true value is actually less than its stated market value.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


watered stock
Shares of stock of a corporation that were issued at a price greater than fair market value. The actual value of watered stock is less than the value carried on the books of the corporation.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.

watered stock
n.
   shares of stock of a corporation which have been issued at a price far greater than true value. In this case, the actual value of all shares is less than the value carried on the books of the corporation.
   See also: corporation, share, stock

Law dictionary. . 2013.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Watered stock — is an asset with an artificially inflated value. The term is most commonly used to refer to a form of securities fraud common under older corporate laws that placed a heavy emphasis upon the par value of stock. Origin of term Stock Watering was… …   Wikipedia

  • Watered Stock — Stock that is issued with a value much greater than the value of the issuing company s assets. Watered stock can be caused by excessive stock dividends, overvalued assets and/or large operating losses. Assets can be overvalued for several reasons …   Investment dictionary

  • watered stock — A stock representing ownership in a corporation that is worth less than the actual invested capital, resulting in problems of low liquidity, inadequate return on investment, and low market value. Bloomberg Financial Dictionary * * * watered stock …   Financial and business terms

  • watered stock — noun stock representing ownership of overvalued assets; stock of a corporation whose total worth is less than its invested capital • Hypernyms: ↑stock * * * watered stock, 1. U.S. cattle given little water while being driven to market, and then… …   Useful english dictionary

  • watered stock — noun Shares of stock in a business that are inflated by parties colluding with the seller making inflated offers for the property that the stock represents, which are reported to potential sellers as indicative of the value of the stock …   Wiktionary

  • watered stock — n. (Finance) stock issue offered to the public at a greatly inflated price in relation to the real value of the company s assets; stock of a company whose total worth is less than its invested capital …   English contemporary dictionary

  • watered stock — See: stock watering …   Accounting dictionary

  • watered stock — See stock watering …   Big dictionary of business and management

  • watered stock — Shares issued by a corporation without an increment of capital corresponding to the number issued. Shares of stock issued by a corporation as fully paid, but which have in fact been issued without any consideration or at a discount, as in… …   Ballentine's law dictionary

  • watered stock —    Shares of a corporation that were issued at a price greater than their true current value, as indicated in the accounts of the corporation. Often the individual shares have become a smaller percentage of the total share capital, because of… …   Business law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”