Watered Stock
Defined in 3 dictionaries — Cyclopedic (1922), Ballentine's (1916), Black's (1910)
The Cyclopedic Law Dictionary
Walter A. Shumaker and George Foster Longsdorf; ed. James C. Cahill · 1922
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.
Ballentine's Law Dictionary
James A. Ballentine · 1916
Black's Law Dictionary
Henry Campbell Black, M.A. · 1910
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.
Defined under Stock in Black's Law Dictionary.