Watered Stock

Stock which is issued as fully paid up, when in fact the whole amount of the par value thereof has not been paid in. If any amount less than the whole face value of the stock has not been paid, and the stock has been issued as fully paid, then the stock is watered to the extent of the deficit. Watered stock is, accordingly stock which purports to represent, but does not represent, in good faith, money paid into the treasury of the company, or money's worth actually contributed to the working capital of the concern.

188 Mich. 7, 13; Cook on Corporations.

See Watering Stock. WATERGANG (Law Lat. watergang ium). A Saxon word for a trench or course to carry a stream of water, such as are commonly made to drain water out of marshes. Ord. Mar. de Rom. Chart. Hen.