Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Paid-in capital is the total amount of cash that a company has received in exchange for its common or preferred stock issues.The capital stock is the total share capital (including equity capital and preference capital) that a company has issued. Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. The cost of preferred stock to a company is effectively the price it pays in return for the income it gets from issuing and selling the stock. To keep the cost of debt service and other impacts of capital projects at levels affordable in the operating budget. Please fill out this field. Investing. Investing. 2 The appellees are referred to in this Opinion as the "petitioners" or the "minority shareholders.