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LSDefine

Simple English definitions for legal terms

watered stock

Read a random definition: frankmarriage

A quick definition of watered stock:

Watered stock is when a company gives someone stock in exchange for something that is worth less than the stock. This used to be a big problem because investors relied on the value of the stock, but sometimes the company's actual value was less than what the stock was worth. This doesn't happen as much anymore because most stocks don't have a set value.

A more thorough explanation:

Definition: Watered stock refers to stocks that are issued by a company in exchange for assets that are worth less than the value of the stock. This practice was more common in the early 20th century when investors relied on the par value of stocks to determine their worth.

For example, if a company issued 100 shares of stock with a par value of $10 per share, the total par value of the stock would be $1,000. If the company then traded assets worth only $500 for those 100 shares of stock, the stock would be considered "watered" because the assets received were worth less than the par value of the stock.

When stocks were "watered" in this way, investors could be misled into thinking that the company was worth more than it actually was. This could lead to financial losses for investors if the company's true value was revealed.

Today, watered stock is less common because most stocks have a very low par value or none at all. This means that the value of a stock is not tied to its par value.

Waste | Watkins v. United States (1957)

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18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
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