Capital Stock

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Related to Capital Stock: issued capital stock

Capital Stock

All 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as security for the creditors of the corporation who have relied on its existence, since it cannot be diverted or withdrawn to the detriment of corporate creditors.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 stock

n. 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.

References in periodicals archive ?
It is well known that erecting barriers to the free flow of goods and services across national borders undermines the division of labor and standards of living by impeding the adjustment of the capital stock to its most productive uses.
This research developed a measure of actual capital discards by deflating historical dollar gross book value data to obtain gross book value capital stock measures.
Because of the important theoretical and empirical differences between capacity output and capital input, the Federal Reserve uses the capital stock figures only to refine year-to-year movements in its capacity estimates and only when physical capacity data have not been compiled.
The Company anticipates that approximately $14 million of the remaining net proceeds of the offering will be used within approximately 30 days after the issue of the Notes for additional purchases of its capital stock in the open market or in negotiated transactions.
The merger agreement is subject to Broadband, on or before February 15, 2007, having sold, or entered into binding subscriptions for the private placement by it, contemporaneously with the closing of the merger, shares of its capital stock in an amount that will result in gross proceeds to the Company of at least four million five hundred thousand dollars ($4,500,000) in a private offering of its securities without registration.
In addition, the Company's increased authorized capital stock from 100,100,000 shares, consisting of 100,000,000 of common stock, par value $0.
6% of the capital stock (Class B Shares), employees, retirees and employee trusts which own 6.
a blank check company, was formed on February 3, 2005, to serve as a vehicle to effect a merger, capital stock exchange, asset acquisition or other similar business combination with an operating business.
As a result of the shareholder approval to increase the number of shares of Capital Stock, the Company will effect its previously announced two-for-one stock split, originally approved by its Board on March 1, 2006.
a) issue to Shoreham 125,000 common shares in the capital stock of PC within thirty business days of the approval and satisfaction of all conditions of the regulatory bodies governing PC;
05 per share in cash, without interest, in the proposed merger is fair to the holders of shares of Net2Phone's capital stock (other than IDT and its subsidiaries) from a financial point of view.