Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. What is capital stock?Capital stock is the total amount of stock, both common and preferred, that a public company has the authorization to issue. Capital stock is the common stock and preferred stock that a company is allowed to issue according to its corporate charter. The meaning of CAPITAL STOCK is the outstanding shares of a jointstock company considered as an aggregate. Additional paid-in capital is a component of shareholders' equity that reflects the price investors are willing to pay above the par value of issued stock. Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. The primary goal upon exiting is to profit from the sale. These earnings, known as capital gains, are subject to specific taxation. As a new owner, you are responsible for any taxes that were not paid as of the time escrow closed.

Capital Stock Definition In Los Angeles

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