Definition of Watered stock

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TeachMeFinance.com - explain Watered stock




historic definition...

Watered stock -- A colloquialism used when the capital stock of a company is increased in amount without a corresponding increase in assets. When a stock dividend is declared the original stock is watered to that extent unless the new stock represents added property or value in some form.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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