Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
watered stock
Stock issued with a par value greater than the value of the corporation's assets. "The term 'watered stock' is a colorful common law phrase describing the situation where shareholders receive shares without paying as much for them as the law requires Much of the early common law relating to watered shares concerned the liability of shareholders receiving watered shares to pay the additional consideration needed to 'squeeze out the water.' ... [It now] seems clear that a shareholder is liable to the corporation if he or she pays less for the shares than the consideration fixed by the directors, and this liability is measured by the difference between the fixed consideration and the amount actually paid." Robert W. Hamilton, The Law of Corporations in a Nutshell 120-21 (3d ed. 1991).
watered stock.
See STOCK,