Capital stock represents the equity shares held in a corporation. In the USA, the two fundamental types of capital stock are common stock and preferred stock.
Capital widening in macroeconomics refers to the process of increasing an economy's capital stock to enhance production levels.
Deficit Net Worth, also known as negative net worth, occurs when a company's liabilities exceed its assets and capital stock, often due to operating losses.
Fully paid capital stock of a corporation contributed without consideration to the same issuing corporation. Donated stock is generally classified as capital stock and can impact both the financial and operational aspects of the corporation.
Impaired Capital refers to the situation where a company's total capital is less than the stated or par value of its capital stock, indicating financial difficulties or ongoing losses.
In the USA and Canada, stock (shares) that have no par value or assigned value printed on the stock certificate, thus avoiding contingent liabilities and simplifying accounting entries.
The term 'outstanding' has various meanings depending on the context, particularly in accounting and finance, where it can refer to unpaid debts, checks not yet presented for payment, and stock held by shareholders.
Overissue refers to the issuance of shares of capital stock in excess of the number authorized by a corporation’s charter. Preventing overissue is the function of a corporation's registrar, usually a bank acting as an agent, which works closely with the transfer agent.
