Define common capital stock.

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Multiple Choice

Define common capital stock.

Common capital stock is the par value of the stock that is actually issued and currently outstanding. The par value is the nominal amount assigned per share when stock is issued, and the number of shares outstanding excludes any shares that the company has repurchased and holds as treasury. This measure reflects the portion of contributed capital that is in circulation among investors, not the maximum amount that could be issued (authorized) or the current market value (market capitalization). So it captures the par value of the shares that have been issued and remain outstanding. For example, if 900 shares with a par value of $1 are issued and outstanding, common capital stock is $900.

Common capital stock is the par value of the stock that is actually issued and currently outstanding. The par value is the nominal amount assigned per share when stock is issued, and the number of shares outstanding excludes any shares that the company has repurchased and holds as treasury. This measure reflects the portion of contributed capital that is in circulation among investors, not the maximum amount that could be issued (authorized) or the current market value (market capitalization). So it captures the par value of the shares that have been issued and remain outstanding. For example, if 900 shares with a par value of $1 are issued and outstanding, common capital stock is $900.

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