What is water capital?

Answer 1

Watered capital is the value of the eroded capital on account of a company continuously incurring losses. The accumulated losses and other intangible assets are viewed as a percentage of the paid-up capital and watered capital is the residual part of the paid-up capital after accounting the amount of losses

Answer 2

when the stock or capital of a company is not represented by issue of equivalent value,it is termed as watered capital signifying presence of water in the capital of the company.