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What are Stock Certificates?

The reason why corporations issue corporate stock is in order to raise capital. If you buy a corporate stock share, then you become a partial owner of the corporation that sold you the stocks. The number of shares you buy from the corporation represents your interest in that corporation. And he becomes a shareholder of the corporation.

At least half of the corporate stock is retained by the corporation. The remaining shares of corporate stock are sold to purchasers or on the open market through stockbrokers. There are those who give the remaining shares directly to their employees. You have the power to determine how the corporation conducts business if you own more than half of the corporate stocks available. Corporatins want to maintain control of the business and this is why they don’t sell half of the corporate stocks to the public. The controlling or majority shareholder is the one who owns more than half of the corporate stocks. Then you will have the right to vote or the right to receive dividends from the corporate profits.

Corporations issue two types of stocks namely the common stock and the preferred stock. Shareholders are issued common stocks. Preferred stock is like a promissory note which carries a fixed dividend percentage rate. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. You can have a voting or a non-voting common stock. If you hold a voting common stock, you are able to elect the board of directors of the corporation. Even if you are a non-voting common stockholder, then you will receive a share of the corporation’s assets upon its dissolution.

A stock certificate is a document that certifies ownership of a specific number of stock shares in a corporation. This document is issued when you buy shares of corporate stock. These stock certificates are signed by legal representatives of the corporation which is issuing the stock. Your stock certificate is evidence of your ownership interest in a corporation. If you own corporate stock, then you are able to exercise all rights and privileges associated with being a shareholder in the corporation. These rights and privileges include having a voice and vote in shareholders meetings.

You can get your stock certificates online. They have many free stock certificate templates that you can use. There is some information that will be asked of you in the online form and so you must fill them up carefully so that you get the correct stock certificates that you need. You get all the convenience when getting your stock certificates online. If you want to be part owner of a corporation, then buy your stocks now and get your free stock certificate online.

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