Definition

1. Noun:
   • The total value of a company's shares that have been issued to shareholders: This refers to the book value representing the equity ownership in a corporation, calculated as the sum of the par value of all issued shares.
   • The maximum number of shares a corporation is legally permitted to issue: This is the total amount of stock a company can issue according to its corporate charter or articles of incorporation.

Usage Examples

• Noun:
  • The company's capital stock is valued at $10 million on its balance sheet.
  • The articles of incorporation set the firm's authorized capital stock at 1,000,000 shares.

Advanced Usage

• "Issued capital stock": Refers specifically to the portion of authorized stock that has been sold to and held by shareholders.
  • The issued capital stock represents 60% of the total authorized shares.
• "Outstanding capital stock": Refers to shares currently held by all shareholders, excluding treasury stock (shares repurchased by the company).
  • Dividends are paid per share on the outstanding capital stock.

Variants and Related Words

• Share capital (n): A synonymous term, especially in financial contexts outside North America, for the total value of issued shares.
  • The share capital was increased to fund the expansion.
• Authorized shares (n): The maximum number of shares a company can issue, as specified in its charter.
  • The board voted to increase the number of authorized shares.

Synonyms

• Equity capital: Funds raised by a company in exchange for ownership shares.
• Issued shares: The portion of authorized stock that has been distributed to shareholders.

Related Terms (Conceptual)

• Common stock: The most prevalent class of capital stock, granting ownership rights and often voting power.
  • Holders of common stock elect the board of directors.
• Preferred stock: A class of capital stock that typically has priority over common stock in dividend payments and asset distribution.
  • The preferred stock pays a fixed dividend before any is paid to common stockholders.

Noun

1. the book value of the outstanding shares of a corporation
2. the maximum number of shares authorized under the terms of a corporation's articles of incorporation