capital stock

noun

Definition of capital stock

1 : the outstanding shares of a joint-stock company considered as an aggregate

Examples of capital stock in a Sentence

Recent Examples on the Web

Looking at the 2% wealth tax proposed by French economist Thomas Piketty, the Tax Foundation estimated a 4.2% reduction in American wages, a 13% reduction in the capital stock, 900,000 jobs lost and a 4.9% reduction in GDP. Tracy C. Miller, Twin Cities, "Tracy C. Miller: Wealth tax won’t stand up to scrutiny," 8 Sep. 2019 One of the bills included in the bill package would authorize the federal government to purchase 150,000 shares of the North American Development Bank’s capital stock; thus increasing their capital by about $1.5 billion. Gustavo Solis, San Diego Union-Tribune, "These six projects could fix the cross-border sewage spills," 1 Sep. 2019 Vargas and Peters’ bill — the North American Development Bank Pollution Solution Act — authorizes the federal government to purchase 150,000 shares of NAD Bank’s capital stock; thus increasing the bank’s capital by $1.5 billion. Gustavo Solis, San Diego Union-Tribune, "San Diego representatives want $2 billion to help stop cross-border sewage flows," 22 July 2019 The degree of slowdown as stimulus fades is a matter of debate among economists, with some predicting the effects could last beyond two years if the U.S. boosts its capital stock and upgrades its workforce during this period of strong growth. Fortune, "'Wile E. Coyote Is Going to Go Off the Cliff:' Former Fed Chair Bernanke Is Not Optimistic About the U.S. Economy," 8 June 2018 America had costly workers, ageing capital stock, pricey feedstocks and sluggish demand. The Economist, "America’s chemicals industry is booming. But politics may get in its way," 14 Apr. 2018 That remains well below pre-crisis levels of 2% to 2.5% because the contribution of labor and capital stocks to potential growth remains weak. Richard Barley, WSJ, "How Fast Can the Global Economy Go?," 17 Apr. 2018 Under the terms of the agreement, First US Bancshares will acquire all of the outstanding capital stock of The Peoples Bank and then merge The Peoples Bank into First US Bank. William Thornton, AL.com, "First U.S. Bancshares to acquire The Peoples Bank," 17 Apr. 2018 As Britain’s capital stock gets more sophisticated, workers can become more productive. The Economist, "Britain’s era of abysmal productivity growth could be at an end," 12 Apr. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'capital stock.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of capital stock

1709, in the meaning defined at sense 1

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Statistics for capital stock

Last Updated

17 Sep 2019

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Time Traveler for capital stock

The first known use of capital stock was in 1709

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More Definitions for capital stock

capital stock

noun

Financial Definition of capital stock

What It Is

Capital stock is the number of shares that a company's charter authorizes for issuance.

How It Works

A corporate charter is a legal document that sets forth a corporation's basic information, such as its location, profit/nonprofit status, board composition, and ownership structure. Corporate charters typically include the number of shares that the company is authorized to issue (both common and preferred stock) in total forever. The founders and board members typically decide what the amount of capital stock will be, with input from their attorneys and industry norms. The capital stock amount becomes public record when the company files the corporate charter with the secretary of state for the state in which the corporation is headquartered.

Why It Matters

Capital stock is not necessarily equal to the number of shares that are currently outstanding; capital stock is the maximum number of shares that can ever be outstanding. If companies want to change this number, they must amend their charters. When companies do this, it may be an indication that companies intend to raise capital.

Source: Investing Answers

capital stock

Legal Definition of capital stock

see stock

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