Capital Stock Insurance Companies

AAA

DEFINITION of 'Capital Stock Insurance Companies'

A capital stock insurance company is a company that gets its capital from contributions from its stockholders in addition to its surplus accounts and reserve accounts. In other words, a capital stock insurance company is one that gets a majority of its assets or money from the sale of shares or stock to stockholders.

INVESTOPEDIA EXPLAINS 'Capital Stock Insurance Companies'

In addition to issuing shares or stocks, insurance companies get their wealth from their surplus and reserve accounts. Reserve accounts are funds set aside by insurance company, at the beginning of a year to meet costs of old and new claims that have been filed. It is important to note that only publicly-traded insurance companies can be capital stock insurance companies.

RELATED TERMS
  1. Calendar Year Accounting Incurred ...

    Calendar year accounting incurred losses is a term used in the ...
  2. Runoff

    The procedure of printing the end-of-day prices for every stock ...
  3. Stock

    A type of security that signifies ownership in a corporation ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Reserve Fund

    An account set aside by an individual or business to meet any ...
  6. Elder Law

    Elder law is a legal specialty focusing on the rights and needs ...
Related Articles
  1. Is Insurance Underwriting Right For ...
    Insurance

    Is Insurance Underwriting Right For ...

  2. Should You Bite On Dental Insurance?
    Insurance

    Should You Bite On Dental Insurance?

  3. Beginner's Guide To Auto Insurance
    Options & Futures

    Beginner's Guide To Auto Insurance

  4. 5 Life Insurance Questions You Should ...
    Options & Futures

    5 Life Insurance Questions You Should ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center