Capital Stock
Definition: "Capital stock" refers to the total amount of shares that a corporation can issue to its owners, or shareholders. It represents the ownership interest in the company. It's important to note that capital stock includes both common stock and preferred stock.
Usage Instructions: - Use "capital stock" when discussing finance, business, or corporate structures. - It is a noun and should be used in sentences where you talk about a company's ownership, financial value, or stock market activities.
Example Sentence: "The company raised funds by issuing new capital stock, allowing investors to buy shares and become part owners."
Advanced Usage: In more complex discussions, you might hear about "authorized capital stock," which is the maximum number of shares a corporation can issue as stated in its charter.
Word Variants: - Common Stock: Represents shares that give shareholders voting rights and dividends. - Preferred Stock: Represents shares that generally do not have voting rights but have a higher claim on assets and earnings. - Outstanding Shares: Refers to shares that are currently owned by all shareholders, including company officials and institutional investors.
Different Meaning:While "capital stock" mainly refers to shares in a corporation, in some contexts, it can refer to the financial resources a company has for investment and operations.
Synonyms: - Equity - Share capital - Stock capital
Idioms and Phrasal Verbs:There aren't any specific idioms or phrasal verbs that directly relate to "capital stock," but related financial terms might include: - Go public: When a company offers its shares to the general public through a stock exchange. - Issue shares: The process of creating new shares of stock to sell to investors.