Definition from Nolo’s Plain-English Law Dictionary
The original amount paid by investors into a corporation for its issued stock. Capital stock bears no direct relationship to the present value of stock, which can fluctuate after the initial issue or first stock offering. Capital stock also does not reflect the value of corporate assets, which can go up or down based on profits, losses, or purchases of equipment.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm