Watered Stock Definition . Watered stock can be caused by excessive stock dividends, overvalued assets and/or large operating losses. BREAKING DOWN 'Watered Stock'Assets can be overvalued for several reasons, including inflated accounting values or excessive issue of stock (through a dividend or employee stock- option program). This term is thought to originate from ranchers who would feed their cattle large amounts of water before market day to make them heavier, fetching a price higher than their worth. Watered stock A stock representing ownership in a corporation that is worth less than the actual invested capital, resulting in problems of low liquidity, inadequate return on investment, and low market value. Watered Stock - Download as Word Doc (.doc /.docx), PDF File (.pdf), Text File (.txt) or read online. Watered definition, having rivers or streams: an amply watered area. Dictionary.com; Word of the Day. The main evil of watered stock lies not in the presence of water, but in the concealment or coloring of that.How to pronounce watered stock in English. NOTES THE ESTABLISHMENT OF LIABILITY ON WATERED STOCK IN MISSOURI INTRODUCTION It has been a long-established policy in Missouri that the holders of 'watered' stock in a corporation or their transferees with notice will. Watered stock definition at Dictionary.com, a free online dictionary with pronunciation, synonyms and translation. Synonyms for watered stock in Free Thesaurus. Antonyms for watered stock. 1 word related to watered stock: stock. What are synonyms for watered stock?
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