Capital stock

Capital stock – Shares authorized by a firm’s charter and having par value, stated value or no par value. Capital stock is any of various shares of ownership in a business. They include common stock of various classes and any preference 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. 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.