This section is from the book "Popular Law Library Vol8 Partnership, Private Corporations, Public Corporations", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
The capital stock of a corporation is the money contributed by the members of a private corporation as the working capital of such corporation. Such capital stock is generally represented by shares of stock issued to the subscribers, who are then known as stockholders.
"Capital and shares are a species of property distinct from each other. The capital or capital stock belongs to the corporation considered as a legal person or entity; the shares are the property of the individual shareholders according to their several holdings, and in the absence of restraint imposed upon them by a valid statute they have the absolute right to dispose of them without any restraint from the corporation."1