Saturday, April 2, 2011

Capital stock

The money which a corporation regards as necessary for doing the business for which it has been organized; and which by its charter it is permitted to raise by subscription, divided into shares. Capital stock may be with par value or may have no par value.  Where stock is with par value, the certificate of incorporation will express the authorized capital stock is stock which has actually been issued; authorized to issue.  The statutes of some states prescribes limitations on the amount of capital stock that may be issued.

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