Capital Stock

Capital Stock - Capital stock is the number of shares a specific company has authorized for sale in accordance with the company's charter, and that includes both common stocks and preferred stocks. The company's charter is a document, filed by the corporation's founders with the U.S state the company's head office is located in, that describes the purpose, place of business, and other details about the corporation, including how many shares of common stock or preferred stock can be issued. The corporation's charter generally specifies all the details about stocks and other financial securities used to raise additional capital for the company's operation.