What is a Capital Stock Formula in Accounting? Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.Access study documents, get answers to your study questions, and connect with real tutors for FINANCE 2400 : at Santa Clara University. Par value gives the accountant a constant amount at which to record capital stock issuances in the capital stock accounts. Capital turnover is the ratio between a company's net sales and the average shareholders' equity across a specified period. For all employees and applicants, RRD is committed to providing equal employment opportunities. Access study documents, get answers to your study questions, and connect with real tutors for FINANCE 2400 : at Santa Clara University.