Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Capital stock is the total amount of shares a company is authorized to issue, while treasury stock is the amount of shares a company holds in its treasury.Investing in the capital stock of a company is simply purchasing common or preferred shares of the company to gain an ownership stake in the company. Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. Typically, the issued and outstanding shares of a company are its capital stock, which is a combination of common stock and preferred stock. However, we may only pay distributions when the board of directors authorizes a distribution out of legally available funds. Typically, the issued and outstanding shares of a company are its capital stock, which is a combination of common stock and preferred stock. The capital stock of a stock corporation shall be subject to the following provisions: (A) Classes.