Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. It is the total amount of physical capital at any particular moment in time.Capital is one of the factors of production. They buy stock in units called shares. Capital stocks are ownership shares issued to investors in exchange for startup funding. These shares can include both preferred and common stocks. Market capitalization, or "market cap," represents the total dollar market value of a company's outstanding shares of stock. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. Describe the asset you sold or exchanged.