City Bank, 31 Conn
Categories: Property
Definition (1910 Edition)
109. Capital stock, as employed in acts of incorporation, is never used to indicate the value of the property of the company. It is very generally, if not universally, used to designate the amount of capital prescribed to be contributed at the outset by the stockholders, for the purposes of the corporation. The value of the corporate assets may be greatly increased by surplus profits, or be diminished by losses, buf the amount of the capital stock remains the same. The funds of the compan may fluctuate; its capital stock remains invariable. unless changed by legislative authority. Canfield v. Fire Ass’n, 23 N. J. Law, 195.
Source: Black's Law Dictionary, 2nd Edition (1910) — Public Domain.
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