The capital stock is an important source of propagation in slumps, a point that has escaped analysis in the cycle-around-trend view of fluctuations. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.Hence capital stock rises till the economy reaches a new steady state. The output (income) worker rises on the account of increased the capital per worker. It is the total amount of physical capital at any particular moment in time. Capital is one of the factors of production. The steady state is the key to understanding the solo model. At the steady state investment is equal to depreciation. This chapter deals with the concepts associated with resource maintenance and capital stocks. This will raise investment spending in the economy.