Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. It is usually issued when companies are trying to fund their growth.Capital, for the classical economists, was a sum of money and not a factor of production. He developed marginal productivity theory and used it to explore the way income is distributed between wages, interest, and rents in a market economy. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. It is usually issued when companies are trying to fund their growth. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. There are four basic resources or factors of production: land, labour, capital and entrepreneur (or enterprise).