watered stock

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Watered Stock

An overvalued stock. A stock may be overvalued for any number of reasons; speculation and over-issue are only two of the most common. Watered stocks are often subject to a price correction.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

watered stock

Stock that is issued with a value considerably in excess of the value of the assets that support it. The term may be derived from the practice of feeding cattle salt to induce them to drink large amounts of water just before they are sold, thereby increasing their weight. Thus, the buyer—whether of stock or of livestock—pays for more than is actually received.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Products: Farm buildings, grain bins, Berico grain dryers, Farmaster/Big Valley/Agstar/Universal/ PolyTuff/Horseman's Choice/Behlen Country gates, fencing, hay feeders, stock watering tanks, bulk feed tanks, squeeze chutes and cattle-handling equipment
The float valve itself is an ordinary stock watering tank float valve which has been modified for this purpose.
Products: Farm buildings, grain bins, Berico grain dryers, Farmaster/Big Valley/Agstar/Universal/ PolyTuff/Horseman's Choice gates, fencing, hay feeders, stock watering tanks, bulk faed tanks, squeeze chutes and cattle-handling equipment
As the water ram pumped continuously, there was an overflow from the milk house tank to the stock watering trough outside the barn.