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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. And he becomes 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. 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. And this is why most corporations try to own more than half of the corporate stock. 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. Common stocks are issued to shareholders. A preferred stock carries a fixed dividend percentage rate and is like a promissory note. Common stockholders receive a share of the corporate assets upon the dissolution of the corporation. Common stock can be voting or non-voting. You can join in the election of the corporation’s board of directors if you hold a voting common stock. 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. A stock certificate is given to anyone who buys corporate stock shares. 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 are a shareholder in the corporation, you have rights and privileges that you can exercise in the corporation. The rights and privileges that you can exercise as a shareholder include having a voice and a vote in shareholders meetings.

If you have bought stocks from a corporation and you need your stock certificates, then you can simply apply for it 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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