Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Capital stock authorized is the number of shares of stock that a corporation is entitled to issue as designated in its charter.Capital stock is the total amount of stock, both common and preferred, that a public company has the authorization to issue. Capital Stock. Definition. Capital stock issued – the number of shares of stock that have been sold and issued to stockholders. The par or stated value of both preferred and common stock is legal capital and is frequently referred to as capital stock. A stock's basis is used to determine the amount of profit on the sale of that stock is subject to capital gains taxes. It is the most populous city in and the county seat of Bexar County. Download and complete Texas property tax forms. Definitions not explicitly defined herein shall retain the meaning as prescribed in the Terms of Use.