The Essential Laws of Explained

August 20, 2019

Miscellaneous

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What are Stock Certificates?

In order to raise capital, corporations issues corporate stock. Being a part-owner of the corporation that issued you the corporate stock share is what you will become if you buy shares of stocks. The number of shares you buy from the corporation represents your interest in that corporation. This is how to become 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. There are those who give the remaining shares directly 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. If a shareholder owns more than half of the corporate stock, he will be called 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. Preferred stock is like a promissory note which carries a fixed dividend percentage rate. Common stockholders receive a share of the corporate assets upon the dissolution of the corporation. If you have a common stock it could be a voting or a non-voting stock. Holders of voting common stock gives you a vote in elections of the board members 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.

If you buy a number of stock shares in a corporation, then you will be given a document that certifies this ownership which is a stock certificate. This document is issued when you buy shares of corporate stock. This is a document signed by the legal representatives of the corporation that 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. The rights and privileges that you can exercise as a shareholder include having a voice and a vote in shareholders meetings.

It is now very easy to 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. Using the online stock certificates give you much convenience in having your stock certificates delivered to you. 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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