Core capital includes the surplus value of common stock.

Question

Quizplus · Accepted Answer

Core capital, primarily in the context of banking and investment, includes the surplus value of common stock because it represents the equity capital of the firm, which is a key component of a bank's or financial institution's primary capital base. This surplus arises when shares are issued at a price above their nominal value, reflecting the additional equity capital that can be used to absorb losses and support operations.

Core Capital Includes the Surplus Value of Common Stock