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What are Stock Certificates?

The reason why corporations issue corporate stock is in order to raise capital. Anyone who buys Corporate Stock becomes a partial owner of the Corporation which issued the Corporate Stock. The number of shares you buy from the corporation represents your interest in that corporation. Shareholders are those that bought corporate shares from the corporation.

At least half of the corporate stock is retained by the corporation. 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. 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. 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. Preferred stock is like a promissory note which carries a fixed dividend percentage rate. If the corporation is dissolved, the common stockholders receive a share of the corporation assets. If you have a common stock it could be a voting or a non-voting stock. You can join in the election of the corporation’s board of directors if you hold a voting common stock. 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. A stock certificate is given to anyone who buys corporate stock shares. These stock certificates are signed by legal representatives of the corporation which is issuing the stock. If you have a stock certificate, then it shows that you are a part of owner of that corporation. If you are a shareholder in the corporation, you have rights and privileges that you can exercise 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 can place your order by giving all the information that is asked of you in the boxes. 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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