capital stock

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.