The capital stock (or stock) of an incorporated business
constitutes the equity stake of its owners. It represents the
residual assets of the company that would be due to stockholders
after discharge of all senior claims such as secured and
unsecured debt. Stockholders' equity cannot be withdrawn from
the company in a way that is intended to be detrimental to the
company's creditors. The stock of a corporation is partitioned
into shares, the total of which are stated at the time of
business formation. Additional shares may subsequently be
authorized by the existing shareholders and issued by the
company. In some jurisdictions, each share of stock has a
certain declared par value, which is a nominal accounting value
used to represent the equity on the balance sheet of the
corporation. In other jurisdictions, however, shares of stock
may be issued without associated par value. Shares represent a
fraction of ownership in a business. A business may declare
different types (classes) of shares, each having distinct