Subdivision 1. Scope. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.Because of their cultural, aesthetic, or historical value, the holder of the asset applies efforts to protect and preserve the asset in a manner. Requirement for payment of capital stock. This section describes purchases, inventory controls, and proper disposal of secondary and postsecondary equipment acquired with federal funds. This fact sheet is intended to help you become more familiar with Minnesota tax laws and your rights and responsibilities under the laws.