In order to be valid, a corporate stock certificate should be signed by the secretary or president of the issuing corporation. A great deal of information should be printed on the face of a blank stock certificate, such as:
- name of the corporation issuing stock
- name of the shareholder
- place where the issuing corporation is incorporated
- date of incorporation
- registered number of the certificate
- date of issuance
- number of shares authorized in the particular issue of stock
- number of shares of stock in a corporation the certificate represents
The reverse side of the certificate should provide a form for transfer of the ownership to another person. After transfer of a stock certificate, the new owner should register the transfer with the corporation.
Stock issued by a corporation may be classified as preferred stock or common stock. Common stock holders can exercise voting rights in business decisions. Preferred stock holders do not have voting rights but they are legally entitled to receive dividend payments prior to issuing any dividends to other shareholders.
There are number of ways to buy stock and receive a stock certificate. Generally, stock certificates are issued as a registered stock certificate or as a bearer stock certificate. Names of registered stock certificate holders will appear in the stockholder's register maintained by a corporation. As its name specifies, a bearer stock certificate is a bearer instrument. Holder of a bearer stock certificate can exercise all authorized rights associated with the stock.
Owning stock or investing in stock market is a sound long term investing plan as long as you stretch risk by purchasing shares in different companies in various industries. From time to time, shareholders may choose to appoint a financial planning entity to manage their stock or shares.
Nowadays you can buy or sell stock online without paper stock certificates. Electronic registration of stocks in a corporation is superseding the paper stock certificates. Companies have a choice now whether or not to issue physical stock certificates.
Stock certificate templates are available online. The US Legal Forms website contains easily downloadable state specific stock certificate templates.