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.

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