Capital Stock

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Dictionary Says

Definition of 'Capital Stock'

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

Investopedia explains 'Capital Stock'

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 Definitions

  • Common Stock

    A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are ...
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  • Preferred Stock

    A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before ...
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  • Balance Sheet

    A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as ...
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    • Outstanding Shares

      Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the ...
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    • Assessable Capital Stock

      The capital stock of any bank or financial institution that could be subject to assessment. Assessable capital stock makes shareholders liable for an amount greater than what they paid ...
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