Capital Stock

Capital stock

Stock authorized by a firm's charter and having par value, stated value, or no par value. The number and the value of issued shares are usually shown, together with the number of shares authorized, in the capital accounts section of the balance sheet. See: Common stock.

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Capital Stock

The maximum number of shares a publicly-traded company is allowed to issue. Generally, the company's charter specifies the number of shares of capital stock, but shareholders can increase or decrease it according to procedures listed in the charter. An increase in capital stock is usually seen as a positive sign for the company. Capital stock includes both common stock and preferred stock. See also: Authorized shares.

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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.

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Capital Stock

Shares of stock that represent ownership of a portion of the corporation.