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Investments glossary

Capital Stock

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Quotes of the day:

Early morning hath gold in its mouth.

— Benjamin Franklin

Capital stock is the number of common and preferred shares that a company is authorized to issue, according to its corporate charter. The amount received by the corporation when it issued shares of its capital stock is reported in the shareholders’ equity section of the balance sheet. Firms can issue more capital stock over time or buy back shares that are currently owned by shareholders.



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