Watering Stock

Legal Definition and Related Resources of Watering stock

Meaning of Watering stock

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.

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This definition of Watering Stock is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.

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See Also

  • Dividend
  • Stock

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