Why Aren’t As Bad As You Think

August 19, 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. 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. Owning more than half of the available corporate stocks will give you the power to determine how the corporation conducts business. And this is why most corporations try to own more than half of the corporate stock. 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. Common stocks are usually sold to shareholders. A preferred stock carries a fixed dividend percentage rate and is like a promissory note. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. 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. Even if you are a non-voting common stockholder, then you will receive a share of the corporation’s assets upon its dissolution.

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. The stock certificate is you evidence of ownership interest in the corporation. If you are a shareholder in the corporation, you have rights and privileges that you can exercise 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.

It is now very easy to get your stock certificates online. They have many free stock certificate templates that you can use. 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. With your stock certificates, you are now certified part owner of the corporation you have bought your stocks from.

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