Watered Stock Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Watered Stock, written in plain English, along with examples of how it is used.
What is Watered Stock?
(n) When a joint stock company or corporation issues its stock for a consideration higher than the book value of such stock in the accounts of the establishment as on the date of transfer, such stock of shares are called watered stock. It is irrelevant of the market price of the stock