Watered Stock in United States
Watered Stock Definition
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.
Watered Stock in Foreign Legal Encyclopedias
| Link | Description |
|---|---|
| Watered Stock | Watered Stock in the World Legal Encyclopedia. |
| Watered Stock | Watered Stock in the European Legal Encyclopedia. |
| Watered Stock | Watered Stock in the Asian Legal Encyclopedia. |
| Watered Stock | Watered Stock in the UK Legal Encyclopedia. |
| Watered Stock | Watered Stock in the Australian Legal Encyclopedia. |
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Browse the American Encyclopedia of Law for Watered Stock
Scan Watered Stock in the appropriate area of law:
| Link | Description |
|---|---|
| Watered Stock | Watered Stock in the Family Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the IP Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Commercial Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Criminal Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Antritrust Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Bankruptcy Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Constitutional Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Tax Law Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the and Finance and Banking Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Employment and Labor Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Personal Injury and Tort Portal of the American Encyclopedia of Law. |
| Watered Stock | Watered Stock in the Environmental Law Portal of the American Encyclopedia of Law. |
Explore other Reference Works
| Resource | Description |
|---|---|
| Watered Stock in the Dictionaries | Watered Stock in our legal dictionaries |
| http://lawi.us/watered-stock | The URI of Watered Stock (more about URIs) |
| Watered Stock related entries | Find related entries of Watered Stock |
Legal Issue for Attorneys
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.
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Notice
This definition of Watered Stock is based on The Cyclopedic Law Dictionary. This entry needs to be proofread.
Practical Information
Note: Some of this information was last updated in 1982
Stock issued as fully paid, for which the corporation (in U.S. law) has received assets worth palpably less than the par or stated value of the stock. Watered stock is created, generally, by an overvaluation of the property given the corporation as consideration for stock. The term watered stock gets its name from the old practice of letting cattle fill themselves up with water just before they were to be weighed in and sold at market. The water could bring up the weight and the buyer would be paying an unfair price for “watered stock.” See also capital (in U.S. law) (Stock).
What is Watered Stock?
For a meaning of it, read Watered Stock in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Watered Stock.
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