Capital Stock
/ˈkæpɪtl stɑːk/
Definitions
- (n.) The total amount of shares authorized for issuance by a corporation, representing ownership equity.
The company's capital stock consists of 1 million shares authorized for issuance.
- (n.) The aggregate par value of all issued shares of a corporation's stock.
The corporation increased its capital stock by issuing new shares to investors.
Related terms
See also
Commentary
Capital stock typically refers to both authorized and issued shares; clarity is needed in documents to specify which aspect is intended.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.