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capital stock
capital stockn.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 n 1. (Accounting & Book-keeping) the par value of the total share capital that a company is authorized to issue 2. (Economics) the total physical capital existing in an economy at any moment of time cap′ital stock′ n. 1. the total stock authorized or issued by a corporation. 2. the book value of such stock. [1890–95] ThesaurusNoun | 1. | capital stock - the maximum number of shares authorized under the terms of a corporation's articles of incorporationauthorized shares, authorized stockstock - the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock" | | 2. | capital stock - the book value of the outstanding shares of a corporationbook value - the value at which an asset is carried on a balance sheet; equals cost minus accumulated depreciation |
capital stock
capital stock the total physical capital existing in an economy at any moment of time Capital Stock Related to Capital Stock: issued capital stockCapital StockAll shares constituting ownership of a business, including common stock and preferred stock. The amount of shares that a corporate charter requires to be subscribed and paid, or secured to be paid, by shareholders. The amount of stock that a corporation may issue; the amount actually contributed, subscribed, or secured to be paid on. The liability of the corporation to its shareholders after creditors' claims have been settled. The valuation of the corporation as a business enterprise. Capital stock is distinguishable from the property and assets of the corporation. The property of a corporation fluctuates and may be greater or less than the original capital invested, but the capital stock remains intact and unaffected by the vicissitudes of business. Undivided profits, or surplus, are not part of the capital stock, although they are included in the general capital or assets of the corporation. The capital stock of a corporation serves only corporate purposes. It functions as security for the creditors of the corporation who have relied on its existence, since it cannot be diverted or withdrawn to the detriment of corporate creditors. Capital stock is sometimes regarded as a trust fund. capital stockn. the original amount paid by investors into a corporation for its issued stock. Capital stock bears no direct relationship to the present value of stock, which can fluctuate after the initial issue or first stock offering. Capital stock also does not reflect the value of corporate assets, which can go up or down based on profits, losses, or purchases of equipment. Capital stock remains as a ledger entry at the original price. capital stock
Capital stockStock 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.Authorized SharesThe maximum number of shares a company is allowed to issue. Generally, the company's charter specifies the number of authorized shares, but shareholders can increase or decrease it according to procedures listed in the charter. Typically, the number of authorized shares is larger than the required amount in order to give a company the greatest amount of flexibility. Authorized shares are also called authorized capital stock or simply authorized 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.capital stock the total amount of capital GOODS (plant, offices, machinery and equipment) currently available to a firm or an economy with which to produce goods and services. The firm's/economy's capital stock requires maintaining by INVESTMENT to replace worn out or obsolete capital items (see DEPRECIATION) but more importantly the size of the capital stock can be increased over time by new investment. Capital formation or accumulation plays a crucial role in expanding the firm's/economy's productive capacity and hence its ability to sustain a high rate of business growth and ECONOMIC GROWTH.capital stock the net accumulation of a physical stock of CAPITAL GOODS (buildings, plant, machinery, etc.) by a firm, industry or economy at any one point in time (see POTENTIAL GROSS NATIONAL PRODUCT). The measurements most frequently used for the value of a country's capital stock are from the NATIONAL INCOME and expenditure statistics. These statistics take private and public expenditure on capital goods and deduct CAPITAL CONSUMPTION (see DEPRECIATION 2) to arrive at net accumulation (which may be positive or negative). The more relevant value of capital stock, from the economist's point of view, is the present value of the stream of income such stock can generate. More broadly, the size of a country's capital stock has an important influence on its rate of ECONOMIC GROWTH. See CAPITAL ACCUMULATION, CAPITAL WIDENING, CAPITAL DEEPENING, DEPRECIATION METHODS, PRODUCTIVITY, CAPITAL-OUTPUT RATIO. Capital StockShares of stock that represent ownership of a portion of the corporation.capital stock Related to capital stock: issued capital stockSynonyms for capital stocknoun the maximum number of shares authorized under the terms of a corporation's articles of incorporationSynonyms- authorized shares
- authorized stock
Related Wordsnoun the book value of the outstanding shares of a corporationRelated Words |