capital stock

capital stock
In common parlance, the shares of stock issued by a corporation and outstanding. Precisely, the amount of money, property or other means authorized by the charter of the corporation and contributed, or agreed to be contributed, by the shareholders as the financial basis for the prosecution of the busine ss of the corporation, such contribution being made either directly through stock subscription or indirectly through the declaration of stock dividends. Dodge v Ford Motor Co. 204 Mich 459, 170 NW 668, 3 ALR 413; the total of all the corporate wealth, subject to all corporate liabilities and obligations. Anno: 45 ALR 1505; 51 Am J1st Tax § 826. See authorized capital stock; net capital stock; stock.

Ballentine's law dictionary. . 1998.

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