Capital Stock Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Capital Stock, written in plain English, along with examples of how it is used.

What is Capital Stock?

(n) Capital Stock is the money paid by the share holders of a company as share capital when such shares was first issued to the shareholders by direct subscription to a share issue offer. This may not represent the market value of the shares or the accumulated reserves or undistributed profit etc belonging to the share holders