Watering Stock
Defined in 3 dictionaries — Cyclopedic (1922), Black's (1910), Anderson (1889)
The Cyclopedic Law Dictionary
Walter A. Shumaker and George Foster Longsdorf; ed. James C. Cahill · 1922
Fictitiously increasing the capital stock of a corporation. It is commonly done when the ordinary profits exceed an ordinary return on the investment, and as much new stock is then issued as will reduce the rate of earnings to normal. See Watered Stock.
Black's Law Dictionary
Henry Campbell Black, M.A. · 1910
In the language of brokers, adding to the capital stock of a corporation by the issue of new stock, without increasing the real value represented by the capital.
A Dictionary of Law
William C. Anderson · 1889
See Dividend, 3; Stock, 3 (3).