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

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 The ratio of the capital stock — the value of factories, machines and such — to the nation’s economic output has actually declined a little since the 1970s. Eduardo Porter, New York Times, "Big Profits Drove a Stock Boom. Did the Economy Pay a Price?," 13 Feb. 2018 But that should be a one-time adjustment, after businesses increase their capital stock in response to more favorable policies. Neil Irwin, New York Times, "The White House Is Very Optimistic on Growth. It Shouldn’t Be.," 14 Feb. 2018 According to an analysis by Germán Gutiérrez and Thomas Philippon of New York University, the ratio of the market value of American corporations to the replacement value of their capital stock has roughly tripled since the 1970s. Eduardo Porter, New York Times, "Big Profits Drove a Stock Boom. Did the Economy Pay a Price?," 13 Feb. 2018 On the other hand, the new plan excludes two-thirds of America’s capital stock, plants, warehouses and other structures, from the benefits of full expensing. Shawn Tully, Fortune, "The GOP Tax Reform Plan Has A Huge New Flaw," 6 Oct. 2017

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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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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