Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Capital stock in accounting is ownership value received for preferred and common shares of a corporation.In economics, Capital stock is production assets. It is the total amount of physical capital at any particular moment in time. Capital is one of the factors of production. Capital stock refers to the total value of all physical assets and equipment that a company uses to produce goods and services. This course surveys investment principles and applications. Checking account balances have soared, as have cash reserves in the business sector. In economics, capital stock is the plant, equipment, and other assets that help with production. Just to recap, the capital stock is a broad measure of the existing physical capital in an economy.