MLchartDataset catalogue

Watered stock

Term · Law · MLC-T-LAW-005209

Shares of stock issued by a corporation for consideration less than their par value, or for property that is overvalued. This practice can mislead investors about the true capital of the corporation, as the stated capital exceeds the actual assets received. Issuing watered stock is generally illegal and can expose directors and shareholders to liability to creditors.

Table 1. Record
IdentifierMLC-T-LAW-005209
FieldLaw
Record as JSON 
{
  "id": "MLC-T-LAW-005209",
  "term": "Watered stock",
  "field": "Law",
  "definition": "Shares of stock issued by a corporation for consideration less than their par value, or for property that is overvalued. This practice can mislead investors about the true capital of the corporation, as the stated capital exceeds the actual assets received. Issuing watered stock is generally illegal and can expose directors and shareholders to liability to creditors.",
  "url": "https://mlchart.com/terminology/law/watered-stock/"
}

Record 5,345 of 5,441 in Law terminology (MLC-0107). Request the full dataset.