Definition for watered stock
n. shares of stock of a corporation which have been issued at a price far greater than true value. In this case, the actual value of all shares is less than the value carried on the books of the corporation.
watered stock
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Legal definitions serve as the cornerstone of legal interpretation, providing clarity and precision within legal texts, statutes, and regulations. A well-crafted legal definition ensures uniform understanding and application of law, which is critical in the administration of justice.
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