Definition of Capital stock:
Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Capital stock can only be issued by the company and is the maximum number of shares that can ever be outstanding. The amount is listed on the balance sheet in the company's shareholders' equity section.
An aggregate of an organizations assets; = sense B. 3a.
Capital stock can be issued by a company to raise capital to grow its business. Issued shares can be bought by investors—who seek price appreciation and dividends—or exchanged for assets, such as equipment needed for operations.
Total amount of a firms capital, represented by the value of its issued common and preferred stock (ordinary and preference shares).
How to use Capital stock in a sentence?
- Knowing the capital stock of a company will let you know how much of an offer to make to purchase it.
- I wanted to buy some capital stock , so I would have a shot at earning some good money next year.
- The amount of capital stock is the maximum amount of shares that a company can ever have outstanding.
- Capital stock is the amount of common and preferred shares that a company is authorized to issue—recorded on the balance sheet under shareholders' equity.
- The capital stock issuance was pivotal in the storybook ending of the firm as it was a great decision to be made.
- The drawbacks of issuing capital stock are that the company relinquishes more control and dilutes the value of outstanding shares.
- Issuing capital stock allows a company to raise money without incurring debt.
Meaning of Capital stock & Capital stock Definition