Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. As you saw in the video, stock can be issued for cash or for other assets.Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. Common stock is a representation of partial ownership in a company and is the type of stock in which most people invest. Description of Capital Stock. Capital stock authorized is the number of shares of stock that a corporation is entitled to issue as designated in its charter. Anyone involved in business will know that capital stock, or equity, is a key component of company success. Authorized shares, or authorized stock, are simply a legally allowed maximum number of shares that a company can issue to investors. The number of issued shares is always recorded in the balance sheet of the company as the owners' equity or the capital stock. Example: Exercise of Stock Options.

Capital Stock Example In Wake

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