What are Stock Certificates?

Corporations sell stocks to people so that they can raise capital. Anyone who buys Corporate Stock becomes a partial owner of the Corporation which issued the Corporate Stock. 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.

At least half of the corporate stock is retained by the corporation. 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. 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.

There are two types of stocks that a corporation issues and these are the common stock and the preferred stock. Common stocks are issued to shareholders. 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. Common stock can be voting or non-voting. 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. 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.

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. You get all the convenience when getting your stock certificates online. Buying stocks from a corporation will indeed make you a part-owner of the corporation that has sold them to you.

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