What are examples of capital stock?

Example of Capital Stock If the stock sells for $10, $5 million will be recorded as paid-in capital, while $45 million will be treated as additional paid-in capital. Consider, Apple (AAPL), which has authorized 12.6 million shares with a $0.00001 par value. The 12.6 million is its capital stock.

Why capital is productive?

In economics, capital refers to the assets–physical tools, plants, and equipment–that allow for increased work productivity. By increasing productivity through improved capital equipment, more goods can be produced and the standard of living can rise.

What is productive capital Marx?

Productive capital reflects the capitalist mode of combining labor power and the means of production. K. Marx wrote: “The various economic epochs through which society has passed are differentiated by the special character of this combination and by the mode of achieving it” (in K. Marx and F.

Is capital stock a capital good?

In economics, the term capital stock is approximately interchangeable with the terms capital goods, real capital, or capital assets. By any of these names, capital stock items are already-produced, durable goods or any nonfinancial asset that works for the production of goods or services.

Is Capital stock a liability or asset?

So can common stock be classed as either an asset or a liability? No, common stock is neither an asset nor a liability. Common stock is an equity.

Is Capital stock a current asset?

What Are Current Assets? Current assets would include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets.

Which is more important labor or capital?

Labor, too, commands its price according to the marginal productivity it contributes. As a rule, investment in capital is more valuable than investment in labor because labor‐​saving machines can often produce higher‐​quality and greater quantities than corresponding investments in labor, but this is not always so.

Is electricity a capital good?

Capital goods of all types such as machines, plants, factory buildings, tools, implements, tractors, etc. There are many goods such as electricity, coal, etc. which are used both as consumers’ goods and capital goods.

Is capital stock a liability or asset?

Is Capital stock a debit or credit?

Account Types

How does productive capital work in a capitalist economy?

Productive Capital. Under capitalism, labor power and the means of production are characteristically combined through the purchase of both by the capitalist for productive consumption. By purchasing the means of production, the capitalist acquires property rights over the material conditions of production.

What is the definition of a productive asset?

Productive Assets means assets (including Capital Stock) that are used or usable by the Company and its Restricted Subsidiaries in Permitted Businesses. Productive Assets means assets (other than securities and inventory) that are used or usable by the Company and its Restricted Subsidiaries in Permitted Businesses.

How does fixed capital stock affect capital productivity?

Improved use of fixed capital stock is reflected not only in higher capital productivity but also in higher labor productivity, lower production costs, and improved product quality.

What does the term capital stock mean in accounting?

In accounting, term capital stock refers to the value received when the company initially issues preferred and common stock shares to the public. The term capital stock may refer to company stock share ownership, or to production assets of an economy.