Capital stock意思

"Capital stock" is a term used in finance and economics that refers to the total amount of stock that a corporation is authorized to issue. It is also known as "authorized share capital" or simply "share capital."

When a company is incorporated, it is granted a charter that outlines the maximum number of shares of stock that the company can issue. This maximum number is known as the capital stock. The capital stock can be divided into different classes of stock, such as common stock and preferred stock, each with its own set of rights and privileges.

The capital stock is an important aspect of a company's finances because it represents the primary source of funding for the company. When a company issues shares of stock, it receives money from the investors in exchange for the shares. This money can be used to finance the operations of the company, to expand the business, or to pay off debts.

The capital stock is also important because it determines the ownership structure of the company. The shareholders of a company are the owners of the company, and they have the right to vote on important matters, to receive dividends, and to sell their shares if they choose to do so. The number of shares that a shareholder owns determines their voting power and their share of any dividends that are paid out.

In summary, capital stock is the total amount of stock that a corporation is authorized to issue, and it is an important aspect of the company's finances and ownership structure.