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Watered stock

Black's Law Dictionary · Henry Campbell Black, M.A. · 1910

Black's Law Dictionary

Stock issued by way of increase or addition to the nominal capital stock of the corporation, and passing into the bands of stockholders either by purchase or in the form of a stock dividend, but which does not represent or correspond to any increase in the actual capital or acfual value of the assets of the corporation.

See Appeui of Wiltbank, 64 Pa. 260, 3 AmRep. 585.