Pococke, Description of the East, II

i. 125, 4. To increase (the nominal capital of a corporation) by the i ue of new shares without a corresponding increase of actual capital. Justification for such a transaction is usually sought by claiming that the property and franchises have increased in value, so that an increase of stock is nece ary in order fairly to represent existing capital. [Commercial slang.] The stock of some of the railways has been watered to an alarming extent by the i ue of fictitious capital, existing only on paper, though ranking equally for dividend when money for this is forthcoming. Usually, the paper stock has been sold to unwary purchasers.