Daniel Drew is popularly credited with introducing…

Daniel Drew is popularly credited with introducing what would be called "watered stock" to the New York financial district, to describe company shares that were issued by false means such as counterfeit certificates or shares issued that were not authorized, resulting in a dilution of ownership; the term supposedly came from his time in the cattle business, when he would have his cattle drink water before selling them, to increase their weight temporarily.

The tactic will be used in the Erie War of 1866-1868 to block Vanderbilt from getting ownership of Erie.

In 1857, Drew had become a member of the board of directors of the Erie Railway and had used his position to manipulate the firm's stock price.

In 1864, Drew had once again struggled with Vanderbilt, speculating on the stock of the New York and Harlem Railroad.

Drew had been selling the stock short, but Vanderbilt and his associates had bought every share he sold, ultimately causing the stock price to rise from 90 to 285 in five months.

Drew loses $500,000.

Born in Carmel, New York, Drew had been poorly educated.

His father had died when Daniel was fifteen years old.

Drew had enlisted and drilled, but because he enlisted too late, never fought in the War of 1812.

After the war, he had started a successful cattle-driving business, marrying married Roxanna Mead in 1823.

In 1834, he had entered the steamship business, competing unsuccessfully with Cornelius Vanderbilt but running numerous profitable lines outside of New York.

He had founded the brokerage firm of Drew, Robinson & Company in 1844, which dissolved a decade later with the deaths of his partners, after which he had continued to work in the brokerage business as an independent operator.