The Art of Mastering

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. If some shares of corporate stock are owned by an investor, this represents a proportionate share of interest in that corporation. And he becomes a shareholder of the corporation.

Most corporations retain at least half of the corporate stock. The remaining shares of corporate stock are sold to purchasers or on the open market through stockbrokers. Some corporations give the remaining shares of stock to their employees. Owning more than half of the available corporate stocks will give you the power to determine how the corporation conducts business. Now we understand why most corporations retain more than half of the corporate shares. 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. Common stockholders receive a share of the corporate assets upon the dissolution of the corporation. 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. 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 issued by the corporation to signifies your ownership of stock shares in the company. Stock certificates are issues once you buy corporate stock shares. Stock certificates are usually signed by the corporation’s legal representatives. If you have a stock certificate, then it shows that you are a part of owner of that 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. 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. 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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