Watered stock

n. (Finance) stock issue offered to the public at a greatly inflated price in relation to the real value of the company's assets; stock of a company whose total worth is less than its invested capital

Watered stock is an asset with an artificially-inflated value. The term is most commonly used to refer to a form of securities fraud common under older corporate laws that placed a heavy emphasis upon the par value of stock.
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Noun
1. stock representing ownership of overvalued assets; stock of a corporation whose total worth is less than its invested capital
(hypernym) stock

A stock representing ownership in a corporation whose total worth is less than its actual invested capital, resulting in problems of low liquidity, inadequate return on investment, and low market value.