Ranking
| Rank | Country | Total market cap (in mil. US$) | Total market cap (% of GDP) | Number of domestic companies listed |
| 1 | United States | 40,719,661 | 194.5 | 4,266 |
| 2 | China | 12,214,466 | 83.0 | 4,154 |
| 3 | Japan | 6,718,220 | 122.2 | 3,754 |
| 4 | Hong Kong | 6,130,420 | 1,768.8 | 2,353 |
What is capital stock and how is it used?
Capital stock is the amount of common and preferred shares that a company is authorized to issue, according to its corporate charter. Capital stock can only be issued by the company and is the maximum number of shares that can ever be outstanding. The amount is listed on the balance sheet in the company's shareholders' equity section.
What is authorized capital stock?
Reserved Stock Options Authorized capital stock is the largest amount of shares a company is permitted to issue. A company's charter usually notes the number of authorized shares it can issue, but the number of shareholders may be raised or lowered based on a series of steps, or procedures, that are summarized in the charter.
Where is capital stock listed on the balance sheet?
The amount is listed on the balance sheet in the company's shareholders' equity section. Capital stock is the amount of common and preferred shares that a company is authorized to issue—recorded on the balance sheet under shareholders' equity.
What is capital capital?
Capital Capital is a term for financial assets or their financial value, ... Preferred Stock Preferred stock refers to a class of ownership that has a higher ... Issued Shares Issued shares are the number of authorized shares sold to and ...
What is the capital stock of an economy?
In economics, capital stock is the plant, equipment, and other assets that help with production. In accounting, this is approximated using the sum of the company's common stock and preferred stock at the prices at which they were initially sold to the public during an offering.
How is a country's stock of capital formed?
Capital formation means increasing the stock of real capital in a country. In other words, capital formation involves making of more capital goods such as machines, tools, factories, transport equipment, materials, electricity, etc., which are all used for future production of goods.
Is capital stock an investment?
When people give a company money as an investment in their success in return for a percentage ownership in the company, they have capital stock. Capital stock, which includes both common and preferred stock, can only be issued by the company and is commonly used to raise capital to grow and operate the business.
What is capital stock government?
The capital stocks, which are the sum of both private and government fixed assets, are computed from annual quantity indexes of fixed assets obtained from the Bureau of Economic Analysis and is the stock associated with each investment series.
What happens when capital stock increases?
Increases in the total capital stock may negatively impact existing shareholders since it usually results in share dilution. That means each existing share represents a smaller percentage of ownership, making the shares less valuable.
How does capital stock affect economic growth?
Because savings and investment add to the stock of capital, more investment in capital leads to more economic growth. The amount and quality of labor: As long as the capital per worker does not decrease, more labor leads to more production.
What is an example of capital stock?
Example of Capital Stock If the stock sells for $10, $5 million will be recorded as paid-in capital, while $45 million will be treated as additional paid-in capital. Consider, Apple (AAPL), which has authorized 12.6 million shares with a $0.00001 par value. The 12.6 million is its capital stock.
Can you sell capital stock?
Common and Preferred stock can be separated into different classes of stock with their own features. In accounting, capital stock is one part of the equity section on a balance sheet. ' Only corporations can sell capital stock to investors.
What is the difference between stock and capital stock?
The capital stock is the total number of shares a company is legally authorized to issue in shares while common stock is a type of share issued by the company forming its capital stock. A company's capital stock is composed of common stock and preferred stock.
Is capital stock an asset?
Capital Stock Is Not a Capital Asset Within a company, capital stock is not an asset at all. It belongs to the equity portion of the balance sheet. However, when one company owns stock in a second, those shares are recorded as an asset.
What is the difference between treasury stock and common stock?
Treasury Stocks have a cash outflow for the issuing company and a cash inflow for the general public. As the issuing company buys back the shares from the open market, they have to pay the money for it to the existing public shareholders. Common Stocks have the shares for sale/subscription in the open market.
Macroeconomics of Persistent Slumps
The capital stock grows stochastically along with growth in TFP, A, and the labor force, L. I calculate the initial capital stock and the stock at each terminal node as
Handbook of the Economics of Innovation, Volume 2
Once the capital stocks have been estimated, the unobserved price of capital services can be imputed. For a single type of capital and labor, the basic GDP/GDI identity can be rearranged to obtain an implicit estimate of the capital service price: c t = ( p t Q t − w t L t) / K t.
Capital Adequacy
Included are common stock, capital reserves, and retained earnings, and adjustments for the cumulative effect of foreign currency translations, less stock held in treasury.
Handbook of Computable General Equilibrium Modeling SET, Vols. 1A and 1B
Hans Lofgren, ... Carolina Diaz-Bonilla, in Handbook of Computable General Equilibrium Modeling, 2013
Handbooks in Economics
The health human capital stock of workers could also raise the returns on capital, by reducing absenteeism, which could reduce the need for firms to have a redundant work force, and could even reduce household size if hiring casual replacement labor for sick family workers is less productive than relying on workers with more specialized experience in the respective firms and families.
Economic Development, Technological Change, and Growth
Another key element of a nation's capital stock is its human capital. A nation's human resources are largely an immobile, fixed asset. This may be especially true, relatively speaking, in the present period, with its very high mobility of capital and technology.
Discount Rates, Default Risk and Asset Pricing in a Regime Change Model
In our benchmark case, debt is issued, but with zero default premium paid by the firm, so that we have as credit cost H ( k, B) = θ B. In this case we can use the dynamic programming algorithm to solve the problem (16.15)— (16.18). Figure 16.5 shows the corresponding optimal value function representing the present value curve, V ( k).
What is capital stock?
capital stock. Any of various shares of ownership in a business. These shares include common stock of various classes and any preferred stock that is outstanding. If a firm has only a single class of capital stock outstanding, the terms common stock and capital stock are often used interchangeably.
What is the net accumulation of a physical stock of capital goods?
the net accumulation of a physical stock of CAPITAL GOODS (buildings, plant, machinery, etc.) by a firm, industry or economy at any one point in time ( see POTENTIAL GROSS NATIONAL PRODUCT ).
What is stock authorized by a firm's charter?
Stock authorized by a firm's charter and having par value, stated value, or no par value. The number and the value of issued shares are usually shown, together with the number of shares authorized, in the capital accounts section of the balance sheet. See: Common stock.
What is authorized stock?
Typically, the number of authorized shares is larger than the required amount in order to give a company the greatest amount of flexibility. Authorized shares are also called authorized capital stock or simply authorized stock.
Why is it important to sell capital stock?
The biggest advantage to selling capital stock is that a company does not need to take out debt in order to finance new projects. If a company needs more money to grow, instead of taking out a loan that they will have to pay back with interest, they can sell capital stock.
What is outstanding stock?
Outstanding shares are shares that have been issued to investors and are not owned by the company. To figure out your company's outstanding shares, simply subtract the number of treasury shares from the total number of issued shares.
What happens to preferred stockholders when a company goes bankrupt?
If a company liquidates (whether it is bought or goes bankrupt), the preferred stockholders will receive a payout before the common stockholders. They also receive different dividends than common stockholders, usually more.
What is par value in stock?
It is important to note that par value is a set dollar amount assigned to each common share. Any amount paid by investors above the par value is noted in the accounting books under additional paid in capital. The amount of capital stock can never be more than the amount of' authorized stock.
What is share trading?
Share trading is the process of buying and selling shares within a company. It is a process that only goes on between shareholders and has no impact on accounting or bookkeeping unless the company actually buys them back (then they become treasury stock).
What happens when a company repurchases stock?
Once a stock is repurchased the company can either cancel it, reissue it, or hold onto it. What is a share? A share is a word used to describe a single capital stock. When a share is issued, it is identified by a share certificate or stock certificate that can be traded by the shareholder.
What is corporate charter?
A corporate charter, also known as a "charter" or as "articles of incorporation ," is a legal document that is used to start a corporation. It is filed with the state government of whatever state the company incorporates in.
What is capital stock?
The term Capital Stock may mean company stock share ownership, or it may refer to production assets of an economy. The term Capital appears in quite a few different terms, with different meanings in business finance, investing, budgeting—and the field of Economics.
Why do economists use capital stock?
Economists, however, use the term to explain the source of economic output for nations. Accountants use the term Capital Stock to explain how companies in private industry generate earnings.
What is capital in economics?
By Smith's definition, capital is stock, while profit refers to realizing the revenue from improvements made to that stock. Smith also viewed capital improvement the preferred objective for the economic and system. Note, however, that Smith called his ideal economic system "natural liberty," although others later named it "Capitalism.".
Where does the word capital come from?
The first known use of the word capital is in early Middle English, in which it was used as an adjective meaning "of or relating to the head.". It derives from the Latin adjective capitalis, of the same meaning, coming from the Latin name for "head," caput. The word originally indicated something affecting the head, ...
What is balance sheet?
The Balance Sheet summarizes the value of the firm's Assets, Liabilities, and Equities at one point in time. Companies normally publish the Balance Sheet and other financial statements just after the close of a financial quarter or year.
What is capital stock?
Capital Stock Definition. The capital stock is the total amount of share capital (including equity capital and preference capital) that has been issued by a company , and the same can be found in the balance sheet in the column of “shareholder’s equity.”. It is a means of raising funds by the company to meet its various business goals.
What is Treasury stock?
Treasury Shares Treasury Stock is a stock repurchased by the issuance Company from its current shareholders that remains non-retired. Moreover, it is not considered while calculating the Company’s Earnings Per Share or dividends. read more. means those issued shares which are bought back by the company.
What does outstanding mean in stock?
Outstanding = It means those issued shares. Issued Shares Shares Issued refers to the number of shares distributed by a company to its shareholders, who range from the general public and insiders to institutional investors. They are recorded as owner's equity on the Company's balance sheet. read more.
What does "issued" mean in a company's charter?
Issued = It means the total amount of share capital that is presently issued by the company out of its authorized capital stock.
Who decides the dividends of a company?
Dividends Dividend is that portion of profit which is distributed to the shareholders of the company as the reward for their investment in the company and its distribution amount is decided by the board of the company and thereafter approved by the shareholders of the company. read more.
Is dividend a tax deduction?
The following are the disadvantages which are listed below: The dividend that the company pays is not a tax-deductible expense. The control of the company is diluted when it is issued. The company is subjected to various laws and regulations when it issues it and thus is complicated than taking a loan, for instance.