Sixteen states levy capital stock taxes (often called franchise taxes, though some states use that term for different types of taxes as well). Instruction in economics and personal finance prepares students to function effectively as consumers, savers, investors, entrepreneurs, and active citizens.Econ 210: Principles of Microeconomics Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. Each shareholder shall be entitled to one vote. Introduction to stocks, stocks and bonds, shorting stock, stocks and bonds, understanding company statements and capital structure. The cost of capital for a company is the opportunity cost for investors in the setting of a diversified portfolio.