Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Instructions for Completing a Statement of Economic Interests (Form I 256).What is capital stock? Paid-in capital is the total amount of cash that a company has received in exchange for its common or preferred stock issues. Corporations must pay an annual Illinois franchise tax based on the amount of paid-in capital as of the 3rd month before the corporation's anniversary month. In economics, capital can be defined as the physical or financial resources used to produce value in an economy. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. Explore the different characteristics of capital in economics. Chart in the Schedule UB instructions to help complete Form. IL-1120-ST.