- 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 watered stock ➔ stock1
* * *Shares which represent overvalued assets, usually because of inflated accounting values. Derived from the practice of giving cattle water before they were weighed in at the slaughterhouse.
* * *watered stock UK US noun [C or U] US FINANCE► in the past, a company's shares that were shown in its accounts at a higher value than a company’s real assets, used to deceive the authorities and possible investors: »
This is an industry which has never issued watered stock.
Financial and business terms. 2012.
Look at other dictionaries:
watered stock — see stock Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. watered stock n. Sto … Law dictionary
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 — 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