![cover image](https://wikiwandv2-19431.kxcdn.com/_next/image?url=https://upload.wikimedia.org/wikipedia/commons/thumb/f/fb/Erie_Railroad_Company%252C_common_capital_stock%252C_1869.jpg/640px-Erie_Railroad_Company%252C_common_capital_stock%252C_1869.jpg&w=640&q=50)
Watered stock
From Wikipedia, the free encyclopedia
Watered stock is an asset with an artificially-inflated value.[1] The term most commonly refers to a form of securities fraud in which a company issues stock to someone before receiving at least the par value in payment.[2]
![1869 stock certificate of the Erie Railroad, signed by Jay Gould](http://upload.wikimedia.org/wikipedia/commons/thumb/f/fb/Erie_Railroad_Company%2C_common_capital_stock%2C_1869.jpg/640px-Erie_Railroad_Company%2C_common_capital_stock%2C_1869.jpg)
Historically, stock watering was prevalent in the 19th century rail industry in the United States.[3][4]