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 is the total amount of shares a company is authorized to issue, while treasury stock is the number of shares a company holds in its treasury.The capital stock is an important source of propagation in slumps, a point that has escaped analysis in the cycle-around-trend view of fluctuations. Capital stock are equity holders in the company. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. Capital formation is a concept used in macroeconomics, national accounts and financial economics. Occasionally it is also used in corporate accounts. Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital stock refers to the total value of all physical assets and equipment that a company uses to produce goods and services.