What are Stock Certificates?

In order to raise capital, corporations issues corporate stock. If you buy a corporate stock share, then you become a partial owner of the corporation that sold you the stocks. Your interest in the corporation is shown in the number of shares you bought from it. This is how to become 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. 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. Now we understand why most corporations retain more than half of the corporate shares. 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.

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. When the corporation is dissolved, all corporate stockholders are given a share of the assets 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 a document that certifies ownership of a specific number of stock shares in a corporation. A stock certificate is given to anyone who buys 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. 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. You will find many sites online where you can get your free stock certificates. 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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