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capital stock - 5 dictionary results

capital stock

–noun
1. the total stock authorized or issued by a corporation.
2. the book value of the outstanding shares of a corporation, including retained earnings and amounts paid in by stockholders.

Origin:
1890–95
capital stock  
n.  
  1. The total amount of stock authorized for issue by a corporation, including common and preferred stock.
  2. The total stated or par value of the permanently invested capital of a corporation.

Capital Stock

The common and preferred stock a company is authorized to issue, according to their corporate charter.

Investopedia Commentary

Capital stock are normally listed on a company's balance sheet.

In financial statement analysis, an increasing capital stock account tends to be a sign of economic health since the company can use the additional proceeds to invest in projects or machinery that will increase corporate profits and/or efficiency.

Related Links

Reading The Balance Sheet
Introduction to Fundamental Analysis
Advanced Financial Statement Analysis

See also: Balance Sheet, Common Stock, Preferred Stock


capital stock

Any of various shares of ownership in a business. These shares include common stock of various classes and any preferred stock that is outstanding. If a firm has only a single class of capital stock outstanding, the terms common stock and capital stock are often used interchangeably. See also authorized capital stock, outstanding capital stock, stock class.


Main Entry: capital stock
see STOCK
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