Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. A new corporate tax applies to corporations and banks, other than federal S-corporations, that do business in New York City.Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. (i) The stocks satisfy the definition of a capital asset under IRC section 1221 at all times during the taxable year in which the taxpayer owned the stocks. New York State and City business corporation taxpayers must file a combined report when the capital stock and the unitary business requirements are met. The NYSE is capitalism at its best, the belief that the free and fair markets offer every individual the chance to benefit from success. 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. Paid-in capital is the total amount of cash that a company has received in exchange for its common or preferred stock issues. Capital stock in accounting is ownership value received for preferred and common shares of a corporation.