Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. What is a Capital Stock Formula in Accounting?The form takes minutes to fill out. The unspent proceeds are not included in the calculation of net investment in capital assets. Some states require corporations to establish directors and issue stock certificates to initial shareholders in the registration process. Capital gains taxes are calculated based on the profits after the return of capital (ROC). PaidIn Capital measures the funds raised via stock issuances, where shares are exchanged for partial ownership in the issuer's equity.