Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. The capital stock is an important source of propagation in slumps, a point that has escaped analysis in the cycle-around-trend view of fluctuations.Economic and financial investment. Capital stock in accounting is ownership value received for preferred and common shares of a corporation. In economics, Capital stock is production assets. The capital account is part of the balance of payments, tracking the flow of capital in and out of a country. This chapter deals with the concepts associated with resource maintenance and capital stocks. The current account records a nation's exports and imports of goods and services. It also includes net investment income (U. Paid-in capital is reported in the shareholders' equity section of the balance sheet.