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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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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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

Whatever has been urged against the proposed Nickel Plate merger, charges of "watered stock" or inflated capitalization have been conspicuous for their absence.

From Time Magazine Archive

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

From Time Magazine Archive

Even if the business is able to pay good dividends on watered stock, the crime of overcapitalization is not lessened, though the harm done is now not to the investor but to the public.

From Problems of Conduct by Durant Drake

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