Desired capital stock is the level of capital stock that a firm needs to maximize its profits. It is obtained when the equation MPK = uc is balanced, where MPK is the marginal producitivity of capital and uc is the user cost. UC is obtained by rpk + dpk, where r is the expected real interest rate, d is the rate at which capital depreciates, and pk is the real price of capital goods.
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
Capital stock is part of liability
Capital Stock (A+)
Capital received from investors for stock, equal to capital stock plus contributed capital. also called contributed capital. also called paid-in capital.
[Debit] Stock account xxxx [Credit] Capital xxxx
Yes
Capital Stock is an equity account. You may think of equity as ownership.
Paid up capital stock is that share capital for which investors or shareholders has made full payment to acquire them.
There is no requirement for a company to issue capital stock.
Subscribed share capital stock is that capital for which investors actually paid money or subscribed while unsubscribed capital is that part of issued capital for which nobody subscribed or nobody purchased stocks.
Capital is the over all amount invested by investers or owners in business while capital stock is the share of capital which any shareholder can purchase if he want to invest in company.
Use its capital divided by outstanding stock, we can get value of the stock.