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watered stock

Cultural  
  1. Stock issued at an inflated price — that is, a price not warranted by the assets of the issuing company.


Example Sentences

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If it did pay dividends on watered stock, the public assumed it was being overcharged.

From The Wall Street Journal Jun. 12, 2026

Fisk’s flamboyance and Gould’s bribes made the Erie’s watered stock seem obviously crooked.

From The Wall Street Journal Jun. 12, 2026

Originally, the term was coined in the robber-baron days of the late1800s and bore connotations of watered stock, rigged markets, stolen company assets.

From Time Magazine Archive

From this practice came the financial term "watered stock."

From Time Magazine Archive

Pretending that the railroads embraced in the consolidation had a great surplus on hand, Vanderbilt, instead of distributing this alleged surplus, apportioned the watered stock among the stockholders as a premium.

From Great Fortunes from Railroads by Myers, Gustavus

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