Finding Similarities Between and Life

July 6, 2019

Miscellaneous

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What are Stock Certificates?

Corporations sell stocks to people so that they can 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.

The corporation mostly sells only half of corporate stock. Stocks that are not retained are sold by the corporation to individual purchasers or through stockbrokers. Some corporations give the remaining shares of stock to their employees. If a shareholder owns more than half of all available corporate stock then he will be able to determine the way the corporation conducts business. Corporatins want to maintain control of the business and this is why they don’t sell half of the corporate stocks to the public. Owning more than half of the corporate stocks will make you the controlling or majority shareholder. He will then be entitled to voting rights or dividends of the corporate profits.

The common stock and the preferred stock are the two different types of stocks that a corporation can issue. Shareholders are issued common stocks. The other type, the preferred stock is similar to a promissory note which has a fixed dividend percentage rate attached to it. When the corporation is dissolved, all corporate stockholders are given a share of the assets of the corporation. If you have a common stock it could be a voting or a non-voting stock. You can join in the election of the corporation’s board of directors if you hold a voting common stock. Non-voting stockholders cannot vote during election of the corporation’s board but they will receive a share of corporation assets when the corporation gets dissolved.

A stock certificate is a document that certifies ownership of a specific number of stock shares in a corporation. Stock certificates are issues once you buy corporate stock shares. Stock certificates are usually signed by the corporation’s legal representatives. The stock certificate is you evidence of ownership interest in the corporation. Owning corporate stocks mean that you can exercise your rights and privileges associated with your being a shareholder in the corporation. This is why you can have a voice and a vote in any of the shareholders’ meetings as your right and privilege as a shareholder.

If you have bought stocks from a corporation and you need your stock certificates, then you can simply apply for it online. Online, there are many sites offering free stock certificate templates that you can use. You simply enter the information into the form given on-site then place your order. This online stock certificates are a convenient way of getting your stock certificates. With your stock certificates, you are now certified part owner of the corporation you have bought your stocks from.

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