capital stock
1
5.9
- noun
- Specialized
:
capital social
- The company's capital stock consists of thousands of shares that represent ownership for its investors.
- net capital stock
- capital stock, net of depreciation
- capital stock turnover
Examples
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Investors are interested in the value of the capital stock when assessing the financial health of a corporation.
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A significant increase in the capital stock typically indicates that a business is expanding and reinvesting in its assets.
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Foreign R&D capital stock is an effective channel of technology transmission via capital and technology imports.
Academic text (2018) -
Similarly, real capital stock, which is adjusted for inflation, is used as an alternative measure of this input.
Academic text (2018) -
New, efficient technologies enter the capital stock each year, while the oldest, or least productive, capital is retired.
Academic text (2000) -
The capital stock increases over time along with GDP, so the capital stock becomes larger as it becomes increasingly productive.
Academic text (2000) -
Another indicator of the robustness of the U.S. manufacturing sector is the size of real net capital stock.
Academic text (1994) -
In macroeconomics, investment means addition to a nation's capital stock of buildings, equipment, software and inventories.
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Gross domestic investment represents not only an addition to the capital stock of the economy but also captures the improvement in the quality of the capital stock.
Academic text (2018) -
Restructuring of industries and renovating large capital stocks will require much time and huge new investments.
Academic text (1991)
Synonyms
The number of shares a company can legally issue
The maximum number of shares a company can legally issue
Surface Forms
Morphology
Both constituents directly contribute to the compound meaning: 'stock' (shares) qualified by 'capital' (funds/assets) yields the stock that represents a company's capital. This is a compositional, domain-specific noun phrase that a B1 learner who knows both words should be able to infer, and comparable literal compounds exist in many languages.
Etymology
Capital stock may come from the simple image of a business's two parts: capital (the main money or assets) and stock (the supply of goods). Imagine a shop's pile of goods and the money it needs to run; the company's 'capital stock' is like that total supply of money and 'shares' that show who owns the business. That's why today it means the total 'shares' or value a company can issue.