Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. In economics, capital stock is the plant, equipment, and other assets that help with production.Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. This paper reconsiders the traditional approach to human capital measurement in the study of cross-country income differences. Capital stock refers to the total value of all physical assets and equipment that a company uses to produce goods and services. It is the total amount of physical capital at any particular moment in time. Capital is one of the factors of production.