Watered-stock Definition

noun

(law): Shares of stock in a business that are inflated by parties colluding with the seller making inflated offers for the property that the stock represents, which are reported to potential sellers as indicative of the value of the stock.

Wiktionary

Other Word Forms of Watered-stock

Noun

Singular:

watered-stock

Plural:

watered stocks

Origin of Watered-stock

Derived from the practice of "watering" livestock before sale, where the seller gives an animal a large quantity of water to drink before a potential buyer weighs the animal to determine its value.

From Wiktionary