Why did they use two diff method under "Capital Stock"? They used 'Authorized" shared for prefer and "Issued and Outstanding" for common stock. Why did they do that?

http://img329.imageshack.us/img329/4623/26130102lj0.jpg

Authorized stocks are the maximum number of shares of stock that a company can issue. And the issued/outstanding stock are the stock that they have given out to stockholders, which is no longer in their possession

Thanks but I wasn't asking for the definition because I clearly understand what it means. What I don't understand is for "Preferred" why would they only calculate the authorized and for "common" they calculated authorized?

wording may throw you off. Concept is preferred have distinct differences; possible redepmtion rate, assumed yearly dividend rate (generllaly fixed); and preffered may have a redemption rate in x amount of years.as as such it clealy is a distinctive class, fiinancials appear treat the exanple correctly.

They didn't use authorized for preferred, and issued and outstanding for common. They have authorized for both, and issued and outstanding for both. Look at your information again.

The only difference under the preferred section is the line about 8% cumulative and non-participating, and that has to do with the dividends, and for the sake of a balance sheet is just for information purposes.