Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. 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.What is capital stock? These funds are shown in the Capital Program in order to provide complete information on the scope and cost of Citysupported projects. The Philadelphia Federal Index is a regional federal-reserve-bank index constructed from a survey of participants measuring changes in business growth. The coincident indexes combine four state-level indicators to summarize current economic conditions in a single statistic. Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. The equation for the change in the capital stock is one of the fundamental ingredients of economic growth. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets.