When someone talks about buying, selling, or owning stock in a company, they’re usually referring to common stock—one or more “shares” that represent fractional ownership of a business.

The value of capital stock is typically a combination of its paid-in capital based on par value and its additional paid-in capital. A company typically sets its common stock’s par value at a ...

In the stockholder’s equity section of the balance sheet, IBM increases the common stock balance for the total par value of $10,000, and the remaining $20,000 received increases the additional ...